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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Crystal ball who wrote (28546)	9/2/1999 3:06:00 PM
From: Lee	Read Replies (1) \| Respond to of 50167

CB,.Re:.will you same people put the blame on him too if the Fed raises rates in October 7% rates didn't hinder the econnomy in '96 or '97. (Compare quarterly GDP with rates on the attached graphs.) stls.frb.org Re:.More money means more plant production and expansion, and who better to have it but US! So the US can ever expand just like they did in Korea until the markets were completely saturated and prices collapsed? Maybe the following headline isn't troublesome to you but pressures exist which could de-rail your gains and the value of your dollar. U.S. Q2'99 Unit Labor Costs Gain Is Largest Since +4.5 Pct Q1'94 biz.yahoo.com Finally, Fed Gov. Kelley is a businessman and not an economist, so maybe you'd be interested in his opinion? KELLEY, OTHER FED OFFLS: READY TO TIGHTEN AGAIN IF NEED BE economeister.com Kelley told Market News International the Fed remains "intensely vigilant," even though the Fed has already raised the federal funds rate 50 basis points since late June, and said it would be "premature" to assume that the Fed will wait until next year to raise rates further. It was a sentiment echoed by other high-ranking Fed sources, who said the Fed is on heightened alert to key wage and price indicators. Kelley was interviewed Tuesday. Lee

To: Crystal ball who wrote (28546)	9/2/1999 4:24:00 PM
From: MeDroogies	Read Replies (2) \| Respond to of 50167

1st - Rubin got out because he had a falling out w/Klinton PLUS he was jealous that he missed out on all the $$$ being made on the Street. 2 - Increased liquidity would KILL industry right now. Not even a monetarist would call for more cash right now. Keynesians would scream at it, and us Schumpeterians LOVE what the Fed has been doing. 3- I have an MA in Economic History and Statistical Analysis. If you think you know something I don't, you're mistaken. 4 - As I stated, I am LONG, very long, in fact. 80% in the market. That's pretty good right now. Greenspan has no interest in causing a correction. He knows that would exacerbate the likelihood of deflation (as I said a greater likelihood than inflation). The FED HAD to raise rates. If you read your Fisher, you'd realize that inflation is a # that includes ASSET prices as well as Consumer prices (and services, now). There is clearly an imbalance that needs to be addressed, and rates are how you do it. 5 - there won't be a crash. Maybe a minor correction. EVEN IF there is a crash, I wouldn't blame Greenspan. That would be disingenuous. The reality is, if there is a crash, it is due to many factors, the least of which would be the Fed. A crash is easily remedied, as Greenspan showed in 1987. The current bull market, my friend, is based on the confidence that Greenspan would do the right thing when necessary. Including taking away the punch bowl when everyone's had too much. BTW, please explain how Rubin has done anything about anything? That is the strangest comment I've ever seen/heard. Like the Treasury Secretary really can effect the economy? Sheesh.... One last thing, the increased liquidity last year saved the economy, so Greenspan was good....but now because he's doing the right thing again he's bad? You've got me confused.