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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (64013)	7/5/1999 1:03:00 PM
From: Tommaso	Read Replies (3) \| Respond to of 132070

Well, it does not cost me anything to speculate on what the Fed does, so I just thought I would take a shot at it. I cannot believe that Greenspan is happy that the main effect of those rate cuts last fall was to expand the bubble. There's a very good article in the latest "New Yorker" about the LTCM event, and the fact that a popular magazine with a circulation of several hundred thousand is informing the public on this seems to me a hopeful sign that more people may be becoming aware of the dangerous game that financial institutions have been playing. It is now much too late to prevent a dramatic deflation of equity values, since they have been allowed to expand to the present level, and I am just guessing that maybe, after failing to do anything about it for several years, the Fed might try raising initial margin requirements from 50% to, say, 60%, with the hope that this would dampen the stock markets without causing a banking collapse.