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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: engineer who wrote (62261)	12/20/2000 7:17:25 PM
From: Jorj X Mckie	Respond to of 63513

I don't think that AG was trying to screw GWB, nor trying to help the Dems. I suspect that he was trying to not be an affect on the elections and I think that the affects on the two parties are incidental. Now that there is an actual president elect, I suspect that AG will work closely with the whitehouse to get positive results so that he is thought of fondly. Ultimately, I think that AG is a member of the Greenspan Party. If I remember correctly, last January, Clinton renewed Greenies appointment as chairman of the fed. But as I understand it, the federal reserve is not a formal government institution.

To: engineer who wrote (62261)	12/20/2000 7:21:50 PM
From: Oral Roberts	Read Replies (1) \| Respond to of 63513

Call me naive but I don't think AG did anything political yesterday for either side. He did exactly what I expected him to do. After the 1/2 point raise and his diligence watch just 1 month ago, he would have looked like a fool if they had gone from inflation killers to holy shit the sky is falling in just 30 days. I think he is behind the curve the same way he was behind the curve with his last rate cut. Nothing more sinister then that IMO.

To: engineer who wrote (62261)	12/20/2000 7:27:09 PM
From: Ramsey Su	Read Replies (2) \| Respond to of 63513

engineer, I don't know how many times I heard people talk about how great a job that AG did and yet, when asked, no one can tell me what he did that was so great. Here is why I think he is going down in history as one of the worst Fed Chairman we know. I hold him responsible for the volatility, which is exactly the Fed's job to minimize. First, we all remember the famous irrational exuberance speech. If you look at history, the Fed did nothing but pump liquidity into the market, creating more exuberance. Then came the systemic crisis created by LTCM. What did the Fed do? They called in a couple of the big Wall Street boys to fork out a few hundred million apiece to bail out LTCM. Miraculously, in the face of all this inflation talk, the Feds dropped rates 3 times. One of these rate cuts was mid session, clearly showing the urgency of the situation. We all know the results. LTCM liquidated "peacefully" and the Wall Street boys all got their money back plus a decent profit. When questioned in front of Congress, specifically related to whether the LTCM type hedge funds should be regulated, Greenspan said no. The industry can regulate themselves. This is total hogwash. If the industry can regulate themselves, then why the 3 rate cuts to bail them out while you are crying inflation, Mr. Greenspan? This gave the message that the Fed will not allow the market to fail. Everyone can go exuberant away with no worries. The next buzz word is Wealth Effect. One of the most simple tools that the Feds have, aside from raising rates, is raising margin requirements. That is textbook MacroEcon 101. Raising margin requirements would not only shut off the speculative buying, it also sends a clear signal that the feds means business. Finally, we had our 3 rate hikes, which was nothing more than reversing the 3 rate decreases due to the LTCM fiasco. So the bubble got blown up to uncontrollable level, with little chance now for a soft landing. The Fed's main job is to provide stability. Mr. Greenspan failed miserably. Now if anyone thinks that Greenspan did a great job. Please state your reasons. My message to Bush is to ask for a quick resignation and bring somebody else on. Ramsey