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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (87508)	12/23/2000 1:55:36 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 132070

b/c they went too low first. And why did they go so low? Because we were on the verge of a fiancial collapse due to the irresponsible action of one particular hedge fund, as well as bad debt accruing in Asia that collapsed financial confidence in that region. too much cash was sent into the markets in a financial orgy. The US was/is the only piston left functioning properly in the global economic engine. All the fuel essentially was poured into it in order to prevent stalling the "motor". And you can take the car analogy even farther in stating that, while more difficult, performing engine adjustments/repairs while in motion is preferable to being stuck dead on the side of the road doing a complete overhaul. Yeah... AG knew that injecting liquidity into the system was running a risk. But taking the risk is preferable to facing a financial meltdown. After all, it is the Fed's job to manage monetary policy in order to keep the economy going, not to let it shut down and slam us into depression just to preserve the almighty dollar. A meltdown may still occur, if what the bears are postulating comes to pass. But I don't see them providing any viable, or politically acceptable, solutions to the problem.. All I see are complaints and defeatism and some sort of nostalgia for a monetary standard that was even more dysfunctional than the current one, namely the gold standard. Regards, Ron