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To: yard_man who wrote (52559)	1/2/2001 11:06:09 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

he is correct, due to the fact that the Fed has shifted from the targeting of money supply to the targeting of the FF rate, the credit bubble has come into existence. normally, the free market would have pushed the FF rate much higher on several occasions during the '90's, if not for the Fed supplying money to meet the blistering demand at the arbitrarily set FF target rate. by targeting 'price' they have basically repeated the mistake of the 1920's Fed, only on a much larger scale. what convinces them they know what the rate should be? hubris...fact is, they DON'T know. they are no better than any other central economic planning agency.