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Strategies & Market Trends : Classic TA Workplace

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To: Perspective who wrote (19755)11/6/2001 11:26:19 PM
From: 4rthofjuly007  Read Replies (2) of 209892
 
<<It's his JOB to take away the punch bowl before everyone gets too sauced>>

Is it really that simple. I'm not sure about 1995, but wasn't the didn't the easing in 1998 reflect the moves in the treasury market? Seems like that is what is happening here. Is AG really setting policy or just keeping pace with where the money is headed in the first place?

Let's not underestimate the power of the boom cycle in itself. Had rates been raised or left alone in 1995, so early relative to the prior recessionary period, what would the implications have been? Were growth rates really that out of control at that point to warrant stunting it? In retrospect, there may have not been a global crisis in 1998 had rates been left unchanged but it sure looked like it at the time. One thing is for sure. AG did take the punch bowl away in 1999. The market still went nuts.
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