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

To: Joe NYC who wrote (112271)	5/23/2000 11:06:00 PM
From: chic_hearne	Read Replies (3) \| Respond to of 1570280

Re: Many people don't have the math skills to translate the inflation distorted picture to reality, and these people will make incorrect economic decisions as a result Joe, Not even a democrat like Clinton would be crazy enough to put another democrat in an important monetary position like this. It has to be someone like Greenspan. If Clinton would have appointed a democrat (like he does for many positions) I think there would have been a fear that swept through the market that nothing would be done until it's far too late. Unemployment is at a 36 year low. The GDP is higher than is has been in a while. Oil is near historic highs. And so on... These are very legitimate concerns. The interest rates are not that high. Look at some historic rates, 6.5% is nothing. Without Greenspan, we could very well be sitting at Dow 5000 and Nasdaq 1000. Did we all forget the Asian crisis? What about the Gulf war? Or the 1987 crash? It could've all easily ended in 1987. What happens, he immediately drops rates by 3/4 point. I find it amusing that many of you are complaining about the person that has in many ways been in charge of the greatest bull market in history. So the speculative Nasdaq bubble has started to burst a little, IT WAS OVERVALUED!! The Dow wasn't overvalued, is it down 40%? If the Nasdaq hadn't gone up 100% in 12 months, everything would be fine. I have no doubt that if there's reason, Greenspan will immediately cut rates by whatever is needed to save the economy. There are legitimate concerns now, there's nothing wrong with being a little preemptive. I agree with you Joe that monetary policy is extremely complex. It's like Einsteins theory of relativity, there's probably only 10 people in the world that actually understand it, none of them are democrats either. chic

To: Joe NYC who wrote (112271)	5/24/2000 12:49:00 AM
From: Dan3	Read Replies (2) \| Respond to of 1570280

Re: These incorrect decisions have a negative impact on the economy... That's a very important point that is rarely brought up. On another subject, it's a real shame that oil taxes, on imports at least, weren't raised when oil was $10-$12 a barrel. We'd have wound up with fewer unneeded behemoth SUV's, could have put the fears about social security's liquidity to rest, and be in a position to temporarily reduce oil taxes now to stabilize the economy. It would have reduced our balance of payments deficit, and lessened global warming as well. Since we have to raise taxes somewhere, why didn't we discourage the consumption of imported oil instead of raising the costs of hiring workers? (due to social security / medicare costs). Too late now, Dan