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Pastimes : Home on the range where the buffalo roam

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To: Boplicity who wrote (10157)	2/14/2001 7:24:24 PM
From: brightness00	Read Replies (2) of 13572

My three additions to your list of causes of the collapse: (1) FED's reckless pumping of liquidity towards the end of 1999. It was a classic case of the pay-off matrix of bureaucrats not co-incide with the pay-off matrix of the economy; the bureaucrats were far more afraid of the Y2K nonsense than the private citizenry. (2) Capital gain tax. The April 2000 tax bill was the real Y2K crisis, which drained even more liquidity than the FED (3) Spectrum auctioning. The bureaucrats thought they found a free pot of gold and promote competition at the same time, in a logic akin to that behind the Californian utility deregulation; ie. utter lack of consideration to the consequences of their actions. What the auction amounted to was a huge tax on the telecom industry because the astronomical proceeds from the auctions were not paid back into the industry, say spreading among the "losers" in the bidding; the net result was a huge tax. There was a reason why the federal government gave out land practically for free during the westward expansion; the bureaucrats of today failed to grasp it. Just my couple cents, Jim

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