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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: yard_man who wrote (105639)5/30/2001 6:28:49 PM
From: patron_anejo_por_favor  Read Replies (1) of 436258
 
Agree, very nice summary of BubbleBoy's current state of mind. This part was perfection:

Moving ahead, Big Al came much closer than heretofore in admitting that he does target asset prices and that the response to these is asymmetric, that there is, if not a Greenspan Put, then certainly a Greenspan Parachute. Allow us to quote;-

'Monetary policy, as we currently practice it, endeavors to lean against the propensities for economic overshooting, from whatever source, by changing interest rates.... Our only realistic alternative is to lean against the economic pressures that may accompany a rise in asset prices, bubble or not, and address forcefully the consequences of a sharp deflation of asset prices.'

Notice, too the asymmetry inherent in this: they will only 'lean' against upside excess, but 'forcefully address' the downside. To do that is to deliberately blow another Bubble by targeting asset prices again:-

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