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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (1660)	1/30/2000 8:16:00 AM
From: limtex	Read Replies (1) \| Respond to of 35685

CB - A major stock market crash would certainly have very very unpleasant consequences. Nuclear war might not be one them or at least not immediately but the major OECD countries would have their hands full with bank collapses and you only need a couple of bank collapses to start something very unpleasant. So what is a major crash well it could be the beginnings of one of we get a drop of more than say 25% from the highs or nearabout. References to where the market was six months ago or even a year ago and how it has climbed since are irrelevant and as good as saying I wish I had bought a stcok at a much lower price. It is history and things have moved on and structured on the more recent valuations. But Mr G knows all about valuations and putting upo interest rates. He was appointed Fed Chariman in early 1987 and was then as he is now very concerned about inflation and in accordance with that vigilance he put up interst rates by 50 basis points at a time and quite quickly thereafter the market crashed. Whereup Mr G in speedy consultation with the British Chancellor ( why ..because the London Stock Exchange is quite imortant on the World stage) decided that they ought to drop interst rates quickly, very very very quickly and while they were at it by quite a lot. They did and the markets recovered almost as quickly. I don't think they enjoyed the whole experience very much. I think Mr G will remember those few hours for the rest of his life and he will be very careful about doing anything that might cause something anywhere near similar. Best regards, L