>>>>Should the Feds be messing with our stock markets or are they there to watch over inflation ? We now have a stock market with few buyers, isn't that a liquidity problem ? >>>>
i know there are some people that think the fed has total control of things, but in this case i think the fed is somewhat irrelevant.
Bull markets go thru phases of childhood, adolescensce, maturity and old age.
Around march of 2000, this bull market was an old geezer, who smoked two packs a day and washed a quarter pounder with cheese down with a 1/5 of vodka - daily -gg- People willing to pay any price for a stock with a con, com, net, etc in it's name, regardless of whether they had a realistic business plan and a chance of success, people ignored completely the statistical odds that 80% of new business fail in 5 years.
the fed has little to do with the overcapacity built into the tech bubble - which would have popped whether he was raising rates or not,
at some point in the future the demand will pick up and the supply of tech stuff will be reduced by companies downsizing and going belly-up, at that point the bear market will be an old geezer, care to aim a guess at it's age right now? -g-
lowering rates doesn't do much good, if nobody is growing and wants to upsize and borrow to buy new stuff, right now most are in the process of downsizing.
the fed is the little guy in the back room pulling the strings on the all powerful oz, he is not oz, the fed was given way too much credit for the bull run on the way up and of course will receive way too much blame for the bust on the way down. |
