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

To: pater tenebrarum who wrote (41058)	2/23/2000 1:25:00 PM
From: HairBall	Read Replies (2) \| Respond to of 99985

heinz blasnik: One senator caught Greenspeak in his obvious contradiction. Greenspan said the market is not overvalued but that because of the increase in equity values there is a wealth effect. This wealth effect is increasing consumption. So the solution to this wealth effect over consumption is to lower the price of equities. One of the senators said why effect that by slowing the economy by raising interest rates, why not do something specific to equities. Greenspan spewed out some gibberish to answer that one. The answer to the wealth effect problem is an old era solution. Cycle the wealth created by innovation and increased productivity by criminal manipulation of the markets into the greedy pockets of Wall Street and then by the government sanctioned Criminal Central Banking Organization that will raise interest rates thus channeling the individual investors wealth into the vaults of the Criminal Reserve. Regards, LG

To: pater tenebrarum who wrote (41058)	2/23/2000 1:36:00 PM
From: sandeep	Read Replies (2) \| Respond to of 99985

Heinz, "interestingly that led some WS analysts to conclude one should buy more high p/e stocks." That makes perfect sense. Greenspan can raise rates all he wants. He CANNOT stop a biotech company from growing very rapidly through innovative drugs. He CANNOT stop an ecommerce company from selling stuff to business/consumers. In fact, by putting a chokehold on credit, he creates a level playing field for a startup company which can raise money from the market, the big companies can't do that because their shareholders wouldn't allow them. All Greenspan is doing is stopping the growth for good companies...