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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (36081)	1/7/2000 12:41:00 AM
From: Charles T. Russell	Respond to of 74651

John, The FED doesn't regulate security markets. They do regulate capital markets through the three mechanisms I mentioned, and which you repeated. If you reread my post I never mentioned the FED regulating a security market. I did mention that the FED IS responsible for monetary policy, chartered or not. Rising interest rates affect the stock market. It certainly affects the money and bond markets. The FED injected quite a bit of liquidity into the system prior to Y2K. They now need to soak up that liquidity. That will affect rates in the near term. This 'rate jitters' is just a smoke screen. The fact is, the NAZ is overvalued. I'm a libertarian John. Fiscal conservative. I've been in the Friedman camp for many years. Strong monetary policy leads to the strong economy we've experienced over the past 2 decades. A few dips, a minor recession, but overall a strong, growing economy. The Reagan tax cuts, and arms buildup played a minor part in all of this. A strong, forward looking Fed has contributed more to fiscal stability than any other factor.