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

To: Crystal ball who wrote (28854)	9/15/1999 6:02:00 PM
From: MeDroogies	Respond to of 50167

Money, of course, is a commodity. But you are looking under the wrong rocks. Cost of money must be factored in, and is.... Take a look at Lee's charts. The answers should be clearer. BTW, I not only read them, learn from them, but I earn my living from what I've learned..... You can't use a monetarist approach to "buy" your way to wealth. It's simply impossible. The money winds up being allocated into non-productive areas and creates black holes of debt require lower rates to keep going....eventually, you can't lower rates anymore and you've created so much debt that your economy collapses. That's why a strong Fed is so important, and why they are always accused of "taking away the punch bowl when the party starts". It's a weird analogy, but it works. BTW, you keep talking about inflation without considering general asset price inflation. Inflation, in general, is non-existent. But, if you factor in asset price inflation, it's running at a rate of (I think I saw) 6%. That's pretty damn high. Someone here mentioned that rather than raise rates, the Fed should raise margin requirements. Well, they did. AND, they put pressure on brokerages to raise them on their own (which some did). Still, asset price inflation continued. What I think is funny is how you hailed him as a hero for his moves last November, but now he's a goat. The man is practical and far more intelligent than 90% of the people on SI.