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To: GST who wrote (114023)	1/2/2001 10:10:08 PM
From: craig crawford	Read Replies (2) \| Respond to of 164684

>> craig: the fed is responsible for the stability of the financial system -- not the stability of the prices paid in the system << Hah! Then why did Greenspan let prices get so out of whack on the upside to begin with? If Greenspan doesn't care about prices paid in the markets, then why did he utter those words "irrational exuberance"? Why would he care if prices were irrational in '96. There was economic stability at the time so why did he open his big mouth? If you argue that rising prices were affecting financial stability in '96, then why did Greenspan let it get even more out of hand in '99 and '00? Perhaps because he was inept and foolish for buying into all the Y2K hype as he pumped endless amounts of liquidity into the system? Didn't he know that everyone was going to take all that money he was printing and throw one helluva Nasdaq party with it? Did he really think we were going to take that money and buy generators and candles? Of course not. He taught small investors that it was ok to buy with reckless abandon on Greenspan's liquidity packed party, because he will be there to bail you out when times get tough. Trouble is, he taught us this by bailing out his rich hedge-fund buddies and big banks in 1998. I guess the american public is finding out the hard way that Uncle Greenspan aint there to bail them out! He reserves that right only for his rich banker friends (who are no less reckless), but the "stability" of the system resides on them functioning properly. ONLY TROUBLE IS--Greenspan is on the verge of making an even larger mistake. Consumer spending fueled by stock market gains has become so pervasive in the economy that now the "stability" of our financial system IS dependent on the little guys he chooses not to help. The US consumer is getting killed by this stock market slide and the consumer IS our economy. After all, look at the trade deficits! No one else wants to buy our goods...hehe Let's hope he realizes this before it's too late.