To: Keith A Walker who wrote (3886 ) 5/12/2000 11:33:00 PM From: Raymond Duray Read Replies (1) | Respond to
OT: I'll never understand why I discuss the FRB at BRCM. ;~))this is the toughest call the Fed will have to make this year or maybe ever Well, yes and no. Yes to this year, the stock market could be crushed if they go 50 and say they want more. No, in the long run, in that there were far more consequential decisions to be made in 10/98, 4/94, 1981, 1970(the real oops, Burns going political on us and igniting the inflationary 70's) and of course during the original Big Kahuna. Any move like that would live in infamy as the "Revenge of the Republicans" After watching in astonishment that some Republican leaders are pissed that they only have 120 days to effectuate the goals of the "Committee to Re-Impeach the President", I believe these people are lunatic enough to do anything. Besides, it's alway Democrat scum that gets thrown out of the job market in the crunch, right? (Of course this is only because this class of Republican is totally clueless that there a tech revolution going on. They can't see it through the Confederate flag hanging in front of their unreconstructed country club.) The best and only book I have ever read about the Fed was "Secrets of the Temple" It is the best, and it seemingly is something that will have no sequel. Wm. Greider has moved on to other subjects. (I like that, he has a curious mind and he solved the banker issue.) What I took away from reading the book is that the FRB, the FOMC, the Chairman and the Board of Governors have only one purpose. That is to save bankers from suffering the normal consequences of the stupid mistakes they make on a cyclic basis, on average every three years. I have never been dissappointed by a lack of understanding of what the Fed is up to if I follow this simple precept. To be blunt, the FRB is designed to use the full faith and credit of [guess who?] to take care of the really dumb things that guys in banking do. Once I understood that, everything else was perfectly clear. The rest is window dressing. When it comes to thousand island dressing, you can count on the banker understanding three hundred and getting covered for the rest by what else? Full faith and croutons. The part which I think has already happened is the crash of 2000. What crash? What happened? Did I miss something? The U.S. equity markets were valued at $17Trillion in Dec. '99. Today the equity markets are valued at $17Trillion. What crash? What happened? Did I miss something?
