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Pastimes : ASK Vendit Off Topic Questions -- Ignore unavailable to you. Want to Upgrade?

To: avanti77 who wrote (11391)	4/12/2000 9:33:00 PM
From: RocketMan	Respond to of 19374

I agree, on a more macro perspective the houses are themselves bit players in a global scenario. I'm not sure how much the game is orchestrated at the global IMF level, or can be orchestrated, it is just too big and random. Part of the problem is that we have a 1930s-era Fed chairman who does not trust the free market system, and the ability of a free market to find its own level, but who believes he has to actively control the economy by artificially fixing money supply and interest rates. This has never been shown to be effective, except in a negative way, but the Fed unfortunately got credit for a soft landing once and he now believes he can do it again. A free economy naturally goes through regular expansion and contraction phases, and govt intervention only exacerbates these cycles and creates boom and bust. There are times, such as during the depression, when active govt intervention was necessary, but it can be argued that it was the govt that turned a recession into a depression in the first place. The Fed already created the current mania by taking a normal expansion, led by technological innovation, and pumping excess funds into it to lessen the impact of a global financial crisis that was iteself brought on by Asian governments. They now think they can bring about a soft landing by increasing interest rates at a time when the global economy is barely making a recovery. In the meantime, they still pump money into the US economy to avert a crisis. We'll see what happens, and I don't think the sky is falling, but AG has a tiger by the tail, and it's going to be hard to tame.