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Strategies & Market Trends : ahhaha's ahs

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To: Jorj X Mckie who wrote (5719)	12/10/2002 4:16:39 PM
From: ahhaha	Read Replies (2) of 24758

I believe that the fed money policy was instrumental in the creation of the late 90s bubble. FED can only create reserves and thereby provide fuel for what people do. They can't push on a string. They can't create prosperity. They can't do anything that you think they can do. More directly, I believe that there was a causal relationship between the fed money policy and equity prices, whether intended or unintended. If FED policy is correct, the policy will achieve stable prices. Then the natural proclivity of people will take over and cause an expansion of business with attendant increase in profits and stock prices. FED didn't intend necessarily that stock prices would rise, but it did intend that sound economy was in place. In the past several years, Greenspan has made several direct statements regarding the equity markets. Yes. He said they were inflated with irrational exuberance. No one listened. So how is it that FED affected the stock market? This indicates to me that you understand that the Fed can influence the direction of the equity market. FED can influence the stock market by reducing inflation to zero. FED hasn't chosen to do that. Therefore, FED undermines the stock market. And since the FOMC does operate through banks and brokerages that are assigned as primary dealers by the FRB, doesn't it make sense that these activities can have a secondary result that effects the equities market in what appears to be a concerted effort? You don't know what you're talking about. Why don't you learn the mechanism before you show how stupid you are. You sound like the lunatic Yahoo 'Bugs who are still pushing GATA. Do you think that that secondary effect on the equity market is ever intended by the FRB? FED would love to see stock prices rise. Wouldn't you? Therefore you must be able to affect stock prices. Surprisingly, anyone who buys and sells does. So what? This third grade crap of your's better end toot sweet, or you're going back into the penalty box.

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