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

To: EricRR who wrote (113085)	5/27/2000 10:20:00 PM
From: Eric K.	Read Replies (2) \| Respond to of 1584307

More importantly though, consumer spending in the US is going down- inventories up. So we should be happy that the economy is slowing down?... as long as we trust the federal reserve to be able to apply monetary policy so as to stop just short of a recession? All investors should have great faith in a class of people that are have less than a 50% confidence interval for predicting the gdp growth rate six months in the future to within 50% of the actual number to take the economy from its disgusting 5% annualized growth rate to a "healthier" 3%, without overshooting? Have you seen a chart of the central bank imposed lending rates and the common stock market indexes in Japan in 1989-1990 and the US in 1928-1929? There is this peculiar correlation between a tightening policy and economic collapse. We do not, of course, know whether there is any causality here, but I suppose we can soon have three data points to show what happens when a central bank attempts to engineer a "soft-landing" to a historically overpriced stock market. -Eric