To: Jim Willie CB who wrote (15863 ) 4/22/2000 11:45:00 PM From: RocketMan Read Replies (2) | Respond to
About the Fed. It would appear that many are now coming to the same conclusion I did several months ago, that the Fed's actions are out of proportion to the actual, rather than perceived, economic problems (of which there are few). And that their actions, with few checks and balances by the executive and legislative branches, has placed the free market system under their thumb. And this goes for the upside as well as the downside. The Naz's bubble was itself the result of excess monetary inflows by the Fed for the Asian rescue and Y2K, and market imbalances created by rising interest rates. At first all indices went up but, as rates began to rise, sector by sector began to fall, beginning with the old economy. Many of these sectors have been in a bear market for a year, and the Naz is just joining the crowd. At the end, investors began chasing the only thing that was working at the time, leading to momentum investing. That's when we saw the Naz going higher and higher from the flimsiest and most speculative of companies, not from the G&Ks.
