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Strategies & Market Trends : Waiting for the big Kahuna

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To: GROUND ZERO™ who wrote (77614)11/20/2007 5:27:00 AM
From: saveslivesbyday  Read Replies (1) of 94695
 
"What could the Fed have done from the onset that could have prevented all this?"

I'll take a stab at that one GZ;

Some suggest they could acknowledge true rate of inflation and raise rates, which would force the markets to crash but ultimately purge the system of the severe excesses in liquidity, risk and speculation that exist.

It could have been done 7 years ago, but Greenspan couldn't deal with a recession so he overreacted by flooding the money supply.

The USA is like a chronically ill patient who prefers to take antibiotics and pain medicine rather than have a big operation that will temporarily hurt, but ultimately fix the problem.

- Saves
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