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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (35723)	12/22/1999 10:34:00 AM
From: Cathedra	Read Replies (1) \| Respond to of 99985

<why should a handful of essentially unaccountable bureaucrats determine what the 'correct' interest rate for money is? we would be better off if this were left to the markets.> But the bond market has been doing that. I think that Uncle Al has in fact been relegating his rate-setting authority to the bond market. Not out of any free market instinct, but to set the bond market up as the scapegoat for the stock market collapse.

To: pater tenebrarum who wrote (35723)	12/22/1999 10:46:00 AM
From: jttmab	Read Replies (2) \| Respond to of 99985

heinz, I think you're saying that rather than "abolish the Fed", you're saying abolish specific functions of the fed? I'll be quite interested in your elaboration on the point. I'll make a couple of thread observations on the point of the membership. I see posts that refer to the Fed as a government organization, sic bureaucrats, and others that characterize it as a private monopoly. Perhaps it's both. [shrug]. On interest rates. The fed sets only one of many. Credit card interest rates are completely free market. While I've heard the argument that the discount rate sets the "tone", I find it hard to accept that credit card interest rates are affected in any significant manner. When I consider the free market. I have to consider the free market handling of equities. Nets stocks and Value stocks disconnected from reality. I do get a little leary of the free markets setting the rate for money...bureacrats might just be establishing some stability to the whole matter. The devil you do know might be better than the devil that you don't know. jttmab