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Strategies & Market Trends : Portfolio Construction

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To: Keith Feral who wrote (641)9/17/2007 7:53:24 AM
From: Keith Feral  Read Replies (1) of 1964
 
Intersting to ear Greenspan's comments the FED. For a man that never used any restraint in his approach to interest rate decisions, it seems comical that he would give other people any advice. However, the one theme to which the world seems directed is the threat of global inflation from the demand pull from Chinese consumers.

I don't see how raising interest rates is going to slow down increasing global demand for food. Maybe Greenspan should come out and tell everyone they are too fat and need to be on a diet.

From a free market perspective, I think the US needs lower rates to improve productivity to address rising demand pull in the global markets. I don't think monetary policy can ever address any part of free market policy. It just baffles me that economists think that higher lending costs are going to have any kind of productive impact on free market competition. It has the exact opposite effect by destroying competition, witness all the layoffs in the financial sectors right now.
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