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To: pater tenebrarum who wrote (54052)	1/4/2001 12:09:04 PM
From: Efthymios H. Zacharias	Read Replies (1) \| Respond to of 436258

Good post from BearForum although I disagree with the author on why the Fed was created (I guess I'm what AG would call a cynic). >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> BOOM --> BUST Posted By: spike Date: Thursday, 4 January 2001, at 10:08 a.m. Greenscam's unwavering resolve to perpetuate unsustainable growth has led us to this unfortunate juncture (inflection point) in our economic history. BUST. While commentators and Street talking heads talk around the issue constantly, they NEVER explain the core premise, which leaves investors ignorant (their intention, of course). And the core premise is that growth isn't always good -- only sustainable growth is good. What defines sustainable growth? It must be an economy that grows without dependence on terminal trends. By terminal trends, I mean sources of supply or demand that trend towards their eventual exhaustion. In the "new economy", (a term coined for the sole purpose of obfuscating the true horror of the imbalances that Greenscam and Wall Street deliberately generated), growth depends on a stock market that rises 20% yearly forever (impossible), personal spending that increases faster than income forever (impossible), savings rates that can continue negatively forever (impossible), and household and corporate debt levels that can increase forever (impossible). One could argue that all of these factors are inter-related or even the same factor -- and that is exactly right. Greenspan's God-like duty is to make sure that the economy is on course for sustainable growth, for unsustainable growth leads us to the economic wreckage of BUST. He has erred hugely. (And deliberately, I'm afraid.) He ushered us into an era where we are now DEPENDENT on the stock market to continue bubbling, for it's bubble or bust. The consumer is tapped out and we have overcapacity in everything. This is exactly the nightmare scenario that the Fed was created to keep us from -- the ravaging cycles of boom-bust that scarred early capitalist societies and convinced much of the world that other systems were preferable. So, to get more current, now that AG has given us a bigger surprise jolt than he gave us when LTCM was about to spasm the whole world, we must wonder: WHERE'S THE DYING BODY? The irony in yesterday's move was not just that the market roared north when the FED confirmed that the economy was worse than we all thought, but that the sectors least likely to benefit from a reduction in rates saw the greatest advances. The NDX, in particular, rose almost 19%. I have to assume the issue relates to the NDX somehow. What is really appalling is that, as long as AG insists on squeezing the last ounces of blood from his terminal trends, the plaque that lives within the mirage known as the NDX will spread more and more and more. Call me a paranoid conspiracy nut if you like, but I can only think that Dr. Greenscam is determined to destroy the current system with this boom. Why? I don't know why. What next? Probably a global currency. Maybe a "start-over" period where all debts are forgiven? I really can't imagine what it will be, but I can't believe that our (U.S. citizens') interests will be paramount. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>