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To: Jim Willie CB who wrote (18334)	5/11/2000 6:24:00 PM
From: freeus	Respond to of 35685

Right on!

To: Jim Willie CB who wrote (18334)	5/11/2000 9:07:00 PM
From: SGJ	Read Replies (1) \| Respond to of 35685

Jimwillie You are preaching to the choir about the excess of power bestowed upon the FED. The mistakes made have reverberated through history. However the FED is here to stay. You or I cannot do away with it, and there appears to be no better solution being proposed for managing the central banking system. So my thought is its best to understand the beast and benefit from that understanding. Also an organization as large as our markets has to have some type of rulemaking or monitoring body. By virtue of its size and complexity it cannot be wholly democratic or laissezfaire. We can argue though about the degree of intervention. I too am for as little as possible, but bureaucrats with power will not be still. I was just pointing out that they do provide somewhat of a safety net to the economy, banks and markets as opposed to being an exclusively nefarious bureaucratic loose cannon. I think this net was brought out a few weeks ago to support the Nasdaq market. I think this, if it indeed happened, would qualify as an emergency situation that you mentioned. I think this is a good thing and that was one of my points. Choices to manage a difficult situation as opposed to letting the invisible hand have at it. So they now are raising rates again. Have been for a few months now. But now supposedly more aggressively. The pundits and experts are a twitter with 100bp, no 200bp hikes this year. Each trying to outdo the other to get more CNBC face time. Of course they have no clue. The question I asked is why. Inflation? There is not that much to worry about, plus as you have said, and the FED well knows, that 3 of the hikes have not worked there way through yet. I think its that there is still too much money out there. You cite Y2k which I agree in addition to the bond buyback program is keeping the money supply high. These hikes need to offset these two liquidifiers. My point was that you dont hear these factors discussed much in the mass media, calmly and intelligently. Only that inflation is here, the recession is coming, FED hikes....wolf at the door. When its really not that simple. THe real reasons though are not that difficult to understand. Best to you. QMAN