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To: westes who wrote (51853)	5/23/2000 6:19:00 PM
From: westes	Read Replies (1) \| Respond to of 99985

Actually, I'll correct myself. The Fed should have increased margin requirements as the primary tool to fight asset inflation, and they should have started doing this a few years ago when it first got out of hand. I don't think the economy needs many more rate increases to get it slowed down, particularly now since the stock decline will have multiplier effects on people's spending.

To: westes who wrote (51853)	5/23/2000 6:33:00 PM
From: bobby beara	Read Replies (1) \| Respond to of 99985

>>>>As long as the Federal Reserve keeps its eye on the ball, this is all going to end up just fine<<<< of course we are all speculating on future events and no one knows the outcome, but i will not heap hero worship on a man or a group of men, can engineer anything, i think this is dangerous bubbleheaded thinking that he will always be able to save the day, the economy is a pyramid scheme, if it has topped in a way it topped in 29 or 73, there is nothing the fed can do about it. The economy is structurally different than these last two periods, this is a consumer economy, consumer spending goes up and down with the nasdaq, the charts match - get my drift. >>>>This is no longer a panic<<<< This is exactly what you want, panic to set a bottom, the panic on 4/14 appears not to have done it, since we are probing to the downside, the next panic will. b

To: westes who wrote (51853)	5/23/2000 11:12:00 PM
From: drsvelte	Read Replies (1) \| Respond to of 99985

"Most people don't realize that in 1929 the Fed acted immediately after the crash to lower interest rates, first from 6% to 5%, then 4.5%, then 4%, then 3.5%. THOSE INTEREST RATE DECREASES DID NOTHING TO HALT THE SLIDE INTO THE ABYSS. The fact is that interest rates are notoriously unreliable as a way to stop recessions and depressions. Interest rates work very well, though, as a way to stop growth" My understanding of monetary policy in the early 1930's is almost opposite of what you describe. Rather interest rates were increased, not decreased, resulting further contraction. Here's a link.... infoseek.go.com Perhaps you can provide a source of information on the reduction in rates from 6% to 3.5%.