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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: john99walsh who wrote (19066)	2/29/2000 9:50:00 PM
From: mauser96	Respond to of 54805

Greenspan took office in August 11, 1987. The Fed had been raising interest rates at least a year prior to the crash in Oct 1987. US 3 month T bills yield was 5.20% on 10/15/86 and had risen to 7.07% on 10/15/87. Less than 2 weeks after the crash the fed had pushed this rate back down to 5.03%. I think the crash of 1987 was in large part due to a miscalculation on the part of the Fed, but I don't primarily blame Greenspan, who probably hadn't been there long enough to to institute major policy changes, and was somewhat trapped by the past actions of Volker. Unlike most stock market crashes , this one was not followed by a recession in the economy. This reinforces the view that it was a fed induced event. I don't think Greenspan wants a repeat on his record.