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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: Crystal ball who wrote (36162)	1/4/2001 1:17:07 PM
From: IQBAL LATIF	Respond to of 50167

Crystal Ball..what a comprehensive post.. very enlightening..I am right now on my way to New Jersey as soon I come back to my home by the evening in NYC, I will like to ask you few questions.. <<Greenspan's ill conceived Fed Rate hikes since last June 1999 that raised the price of the US Dollar,>> This statement caught my eyes, think of it even with the six rate hikes unemployment remained sturbonnly below the 4% mark, now it was the labor market tightness that made AG and other governors uneasy but I woudl ike to pose a question to them that did you get that labor market easiness after 6 rate hikes, the certainly screw the growth but the unemployment level has remained the same nearly, now the brings me to that conclusion that I made in 1997 that Phillip curve is dead, the breakdown of the classical economy the old relationship between unemployment and inflation, the Fed governors not AG got it all wrong that thought that with manufacturing slow down we will see easing of the labour market, now they realise that may be few hikes would have slowed the economy and delivered the goods, now with htis long term correction of the asset inflation I will like Ag to cut the rates by 15th Feb to 5.5%, the market will try to attempt that by keeping fairly low I think after 3028 we will come back to these levels even from here we may see some time but AG will need to cut further and market will try to dare him into that.. great post will keep me thinking and will come back to you to dwell on other points.. yours truly Ike

To: Crystal ball who wrote (36162)	1/5/2001 11:58:12 AM
From: JDinBaltimore	Read Replies (2) \| Respond to of 50167

Crystal Ball, Very insightful post. I think I speak for all on the thread, the time and thought that you placed in your post is truly appreciated, and allows the synergy of "Idea" to evolve. I just have one question... Dosen't tax cuts coupled with a recession resemble Carter Era? If current surplus is wiped out via tax cuts, and not recouped because of weak economy, speaking purely of a domestic view; dosen't that tend to kindle inflation to attract dollars to again be financing basic needs, and again chasing a spiraling deficit economy? Best Regards John