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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Skeet Shipman who wrote (40799)	6/20/1999 8:07:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 94695

Skeet, before the mania of the 1920's, there was a crash in 1907. it was the experience made at that time- namely that things will be righted quickly when they go wrong - that made people so overconfident in the 20's. back then it was the 'organized support' by the banking giants like J.P.Morgan that people counted on - today that role has been taken on by the Fed. just as the 'organized support' couldn't save the market in 1929 as it had in '07, i fear the Fed will be unable to stem a decline once panic hits the market of '99. '87, '97 and '98 have made institutions and the average investor alike incredibly complacent. they think the Fed's magic wand will rescue them every time when the market tanks. as the japanese experience has shown, the capacity of a central bank to stem a flood of selling has it's limits. regards, hb