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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (73284)	1/11/2000 6:03:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 132070

How much more destruction of the free markets you want? <<Should the Fed come to the aid of the bond market IYO?>> They are already doing it. Look at their ballooning balance sheet. They have been monitizing debt for a while. (You can check the St. Louis Fed site) i.e. the biggest buyer of the Treasuries is the Federal Reserve.

To: BGR who wrote (73284)	1/12/2000 9:39:00 AM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

BGR, I believe the bond market is getting pounded because the US has been expanding credit too fast in relation to the level of savings. I believe the economy needs to slow. So yes, AG should tighten. However, it's important to understand my complete view. If AG.com didn't flood the system with credit at every sign of a hiccup we would not be in the position of having to tighten at a point in time where equity prices are extremely high and credit levels may be dangerous. I wouldn't consider a tightening here to be a rescue of bond traders. I would consider a sound policy aimed at preventing even more long term excesses and a sign that AG is not a complete loon. (g) When he lowered rates to rescue Wall St temporarily he was just creating this situation. Wayne