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Politics : High Tolerance Plasticity

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To: Gottfried who wrote (2731)4/3/2001 9:24:06 AM
From: The Ox  Read Replies (2) of 23153
 
I've seen some discussion on the inverted bond yield curve signaling a sharp slowdown or recession. The reversal is an indicator that suggests the rebound isn't too far off. The change from inverted to 'normal' suggests that the worst is over and that we should see a rebound in the not too distant future. The longer the curve was inverted, the longer slowdown was going to run it's course.

To change the subject, look at the majority of companies who are warning the street these days. They are mostly companies related to the computer/internet/software/hardware/phone/communications industries. I was wondering if the FED realizes that for years they have been talking about the increases in productivity which were driving the bull market. The FED's actions have directly targeted this industry's growth and by keeping monetary policy much tighter than necessary, they have destroyed a number of 'new' businesses before they could get off the ground.

This got me thinking about W. Buffett and his stance that he doesn't buy (or want) technology companies because, admittedly, he doesn't understand the business. I wonder if the old farts on the FED board truly understand the elements that make up the industries that drove productivity during the 90s? I'm sure I'm not the only one who scratches their head trying to figure out what the F*&^ the FED has been thinking for the past 36-48 months.

Pump up the balloon, allow the excesses to go way beyond reason, take little to no action (like raising margin requirements at a time when the individual investor finally has 'equal access'(ie the internet) to the markets and then take a sledgehammer to pop the balloon!?!?!

Bail out the likes of LTCM and at the same time destroy a lot of the grass roots entrepreneurs trying hard to make a living.
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