To: Skywatcher who wrote (28808 ) 9/15/1999 4:52:00 PM From: Crystal ball Respond to
Chris you are absolutely right, Greenspan is attacking the wrong problem, and many analysts and brokers and even bankers I talk to think part of it could even be envy, afterall he is on a fixed taxpayer salary, and can not invest himself due to blind trusts/government ethics etc., I think they have a point, but I also think part of the problem here is INVENTORY if we look at Fed funds like Inventory and look at the drop from oh say 7.2% last year to bail out Japan and what looked like the beginning of a world depression starting in Russia, we all have to admit we benefitted from the lower rates oh say 4.6%; But Alan Greenspan does not understand or did not see the TIMING of the INTERNET REVOLUTION or its effect, and the Fed raising rates now, when totally unwarranted by any and every economic statistic since spring, including todays CPI showing no real inflation (except a little in Gas...but the no brainer there is OPEC did raise barrel rates this summer) and as you say, we are not a Brazilian or Mexican Standoff type of inflationary boom bust cycle econoky, we are doing just great, and raising rates PRE-EMPTING IMAGINARY INFLATION is insane, but I'll give him your benefit of too much valium. All I know is that Asia banks are buyin up US stocks, not letting US goods on the low Dollar high Yen pour over into Japan or Asia's Tigers. But then again, I'm sure McDroogies will have a contrary remark, although I would like to see some step by step layout of his logic once, if he has some, until then, we are throwing away the best currency we HAD to buy up the future for US, that is the value of US high tech and internet STOCK SHARES, now still down. Less Mergers and Aquisitions for us, means a tripolarized world (since we trully are the only cosmopolitan culture on this planet economically, politically and demographically) Which mean Greenspan is only puting off the inevitable...which is the best I can say...or more likely pushing US into the depression that the FED thinks it stopped last year, which market forces are only dormant over there. My advice to Greenspan, don't wake a sleeping giant or a hibernating bear. Until Russia and China and the Asian systems do moer to protect proeprty rights and foreign investment or bank bailouts, the FED hand in hand with the IMF is just pouring OUR money down the drain. Thats the only thing the FED has accomplished this whole year, they gave away our prosperity to overseas interests no matter which way you measure it.
