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To: Jim Willie CB who wrote (16906)	11/16/2000 12:01:27 PM
From: LLCF	Respond to of 65232

<you underestimate the critical timing of their late rate hikes and the lagged effect of their hikes> As I said, I am no Fed lover and don't underestimate the above, but agree with your assertion. I also believe the fed kept rates artificially low exacerbating the ensuing mal-investment... but that does not equal "fed creates recessions" IMO. DAK

To: Jim Willie CB who wrote (16906)	11/16/2000 12:16:55 PM
From: edamo	Respond to of 65232

jw....most common cause of recession is drop in consumer demand, most common cause of drop in consumer demand is high interest rates and tight money policy.... depends whether your subscribe to keynes or friedman.....the fed is a bit more keynesian then the monetarist theory of friedman

To: Jim Willie CB who wrote (16906)	11/16/2000 12:49:03 PM
From: Jill	Respond to of 65232

Fed bugs me a lot sometimes, otoh I must say: Greenspan's probably better at it than most anybody else would be. Maybe it's impossible not to overdo or underdo it in either direction, I suspect that's the case since in a sense he's managing the global economy. At least he injects liquidity and rate cuts whenever we veer into the danger zone. And in retrospect we probably needed one less rate hike than we had, but although I agree with RocketMan he doesn't wait the 6-9 mos for it to work through the system, and I suspect he's still not able to fully digest the current economy and is excessively scared of inflation, and perhaps excessively targetting the NAZ, even so, I can see his reasoning.