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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Keith Monahan who wrote (880)	1/25/2001 2:55:14 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

They're doing the best they can and they seem to be representing what I would say is what most people want to know. Greenspan very adeptly handled all questions. He knows how to deal with their level of knowledge. What he can't do is deal with what he implies or what they expect he can do, and that is to properly engineer economy. He has the convincing demeanor and a broad comprehension of all the issues. It was particularly evident in the way he adroitly characterized the California energy generation problem. It was the most accurate assessment yet ventured. Comprehension isn't good enough though. Nothing is and no one can. That's the raison d'etre for free markets. He expressed a concern that the current economic malaise will evolve into something worse. This is a valid concern. I have a feeling that it will come out to be true and I suspect he does too, even though there still is only nominal evidence of recession. Because of this, overt pumping is almost a lock, but they can't come out and do it as they did in the past. They have to do it sporadically. They watch gold too. When they pump and gold starts rattling around, they back off, and back off they should. An economic malaise is a phenomenon that can only be corrected by time. The excesses of economy have to squeezed out. In my judgement we aren't there yet. Counter cyclical monetary policy must be carefully applied, or we will surely get into the '70s rising floor on interest rates and inflation. The best thing the FED can do is let the economy do what it will. It won't fall off a cliff. Nonetheless, this prescription which I can't believe FED won't implement, has negative consequence for stocks. Not all stocks, just the ones that are still acting steroidal.