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To: stock bull who wrote (140911)	8/29/1999 12:18:00 AM
From: jttmab	Read Replies (2) \| Respond to of 176387

stock bull, I think Fed policy, that is using interest rates, should never be used to "control the stock market". I'm pretty sure I agree with that statement. But would you indulge me in a little hypothetical....? Suppose at the last meeting the Fed had tentatively decided to raise short term interest rates 50 basis points rather than 25 [purely based on CPI, PPI, etc.]....but the Govenors and AG said...Hey, if we raise short term interest rates 50 basis points, the markets will tank...so let's raise them 25 basis points and go neutral. They decide to go with the later. Would such logic be appropriate for the Fed? Is that "controlling the stock market"? Best Regards, Jim

To: stock bull who wrote (140911)	8/29/1999 2:07:00 AM
From: jhg_in_kc	Read Replies (5) \| Respond to of 176387

THIS IS THE KEY:the Fed has crossed the line between Fed policy and interfering with private enterprise. AND IN WHOSE NAME? Certainly not mine. The Republicans? The WASP Establishment, now we may be getting closer. THE ESTABLISHMENT DECIDES: STOCKS TOO HIGH, CALL ALAN, HAVE HIM MAKE A SPEECH. (Read: We don't know what we're doing (buying) but if we can rig the game, get the suckers to panic, we can make some fast money to compensate us for our imprudent investment choices made in the Yale Club after brandy and cigars.) so add to your investment considerations, time of next earnings report, time of the CPI or unemployment annoucement, consideration of all fundamentals. THEN... time of the next Greenspan speech!!! WITH THE LAST BEING (in the short run, that is to say, SIX MONTHS OR A YEAR) MORE IMPORTANT THAN ALL THE OTHERS... Who would want to own even the best common stocks under these circumstances? All our best choices and hopes can come crashing down when he says "irrational exuberance"--AT THE RIGHT TIME, THE TIME HE IS TOLD TO SAY IT-- There is a great tragic irony to this, which I will comment upon on a later post. jhg