Allan, seriously, any student on monetary policy with half a brain could see:
- Greenspan anticipated the need for a huge increase in liquidity at end of 1999
was NOT needed... no banking snafus happened, no run on banks
- Greenspan anticipated the need for tightening liquidity in spring2000, hitting the brakes hard, citing unsustainable growth, citing energy costs, citing excessive consumer spending, citing everything as an inflationary threat
capex spending was to come down on its own after Y2K transformation and spending ran its course
energy costs were later seen to be "earnings recessionary", as AG admitted later
it IS an academic exercise, but my view is very simple
GREENSPAN HIT THE ACCELERATOR HARD WHEN MOMENTUM WAS ALREADY NATURALLY UPWARD, UNNECESSARILY SO
GREENSPAN HIT THE BRAKES HARD WHEN MOMENTUM WAS SLOWING NATURALLY DOWNWARD, UNNECESSARILY SO
he accentuates the direction of the natural equilibrium process, both up and down
if you cannot comprehend this and admit this, then you have less insight than I attributed to you previously
I think you DO comprehend this
in accentuating and accelerating the process already underway, Greenspan wreaks untold unnecessary damage
he allows for artificial temporary creation of wealth
then he brings about overeager temporary destruction of wealth
ALL DUE TO HIS EGOMANAICAL NEED TO CONTROL THE ECONOMY
the equilibrium mechanisms are already in place for internal controls
his policy is like a drunk driver, all over the road
Greenman reminds me of my first attempt at a small airplane controls
my roommate had a nice twin-engine Cessna, took me for a joy ride over eastern Mass2shits
he told me to ease to the left, and I went way to the left, having to correct my move
he told me to east to the right, and I went way to the right, having to correct my move
he told me to come down 500 ft, and I went down more like 700 ft, having to correc my move
finally he said "just stay the course, you are fine"
smell the coffee, man
I know you have in the past
but establishing and declaring a scapegoat does not serve to help people
people with real needs and real problems
Congress treated Greenie a little rough yesterday
but they have no oversight over him or the Federal Reserve
NOBODY DOES
sincerely, Jim |
