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Strategies & Market Trends : Commodities - The Coming Bull Market
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To: Scripts who wrote (595)7/24/2001 12:48:41 AM
From: craig crawford  Read Replies (1) of 1643
 
>> When did that happen? <<

well the most egregious example happened in late 1998 and 1999 in response to the asian crisis, long-term capital management, and y2k fears. greenspan went on a money printing spree and investors threw a nasdaq bubble party. all this excessive money growth started to cause prices to rise so he was forced to tighten. people blame greenspan for tightening as if it wasn't necessary. his monetary excesses were causing things like $38/bbl oil in peace time, and he had to put the brakes on to stop the runaway train.

my contention is that the real mistake was to print all the damn money in the first place which built up the inflation pressures, forcing him to tighten. all the economists and market strategist jokers on cnbc think it was the last 50bp hike that did us in. they are mistaken. or perhaps they think he should have cut rates in the fall of 2000 instead of waiting until confidence had eroded by 2001.

how about not creating such a speculative mania that leads to overinvestment in the first place? if he would have just left well enough alone in 1998/1999 and let the markets correct to where they needed to we wouldn't have had such a pronounced mania where risk was thrown out the window and investment capital was poorly allocated.
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