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

To: Ramsey Su who wrote (62272)	12/20/2000 8:03:45 PM
From: Oral Roberts	Respond to of 63513

My understanding of economics is not quite 0 but very close. But we raise rates because the economy is to hot, money is to easy to get and inflation is on the horizon. We raise rates in an attempt to stop the use of money for expansion? If that is right then why are we raising rates to lower the money supply yet at the same time we are printing more money as fast as the presses will run? It would seem to me that these 2 things are working against each other.

To: Ramsey Su who wrote (62272)	12/20/2000 8:15:50 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 63513

Ramsey, I agree about the fed being responsible for stability. And the fed screwed up this time. arno posted some charts on money supply a few days ago. M1, M2 and M3 all went parabolic in 1992. Only M1 has shown any noticeable draining. Though there are many who disagree, I believe that he was very irresponsible in his analysis and reaction to the y2k threat (not saying that it wasn't a real problem, just that it was resolved long before Dec 31, 1999). That was when he was really letting the money flow and it certainly fueled our little speculative bubble. And then of course, he has to drain (which I agree, he did have to drain)....and well.....pop! I don't consider this one of those hindsight situations either. I was arguing here on SI (along with others) that the y2k threat was way overblown as far back as July 1999. There were others who started long before that.