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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (112238)	5/23/2000 6:53:00 PM
From: TGPTNDR	Read Replies (1) \| Respond to of 1570092

OT on subject of Greenspan. I have to go with Scumbria on the opinion of AG. I've been following AG from at least the early 80s. My opinion hasn't changed since then. 1. Note the tbill action starting in August 87(That's when AG became chairman of the Fed.). arts.unimelb.edu.au Review of 'Back from the brink' Alan Greenspan started his term as chairman of the United States Federal Reserve two months before the devastating stock market crash of 1987. Record deficits, severe banking crises, continuing corporate shakeups, massive exchange rate variations, and serious credit crunches have marked the intervening period. ...From a review that calls the book 'fawning'... Greenspan speach, 12/5/96 we need to be forward looking, taking actions to forestall imbalances that may not be visible for many months. There is no alternative to basing actions on forecasts, at least implicitly..... Augmenting concerns about the Federal Reserve is the perception that we are a secretive organization, operating behind closed doors, not always in the interests of the nation as a whole. This is regrettable, and we continuously strive to alter this misperception..... It cannot be acceptable in a democratic society that a group of unelected individuals are vested with important responsibilities, without being open to full public scrutiny and accountability. .... To open up our debates on monetary policy fully to immediate disclosure would unsettle financial markets and constrain our discussions in a manner that would undercut our ability to function. .... Indeed, how will we measure inflation, and the associated financial and real implications, in the twenty-first century when our data--using current techniques--could become increasingly less adequate to trace price trends over time?.... Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning assets. ... But how do we know when irrational exuberance has unduly escalated asset values... Indeed, the sharp stock market break of 1987 had few negative consequences ... bog.frb.fed.us 1/26/2000 ?Our challenge in monetary policy is to foster, as best we can, the financial conditions that will allow this economic expansion and technological revolution to continue as long, and as vigorously, as possible,? ... ============================================= This is a guy who thinks the stock market is an inflation indicator. (WHAT I think it is is a fine indicator of future probable economic activity given current conditions.) His tendency is to jack up rates 'till something breaks'. In '87 he Jacked short term rates up 'till the marked broke, then played 'hero' by lowering them and 'providing liquidity'. How much human growth was lost -- FOR ALL TIME, at compound rates in his idiotic fight against inflation in '94? How about in '98 and '92? tgptndr