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To: goldworldnet who wrote (63814)	2/16/2001 7:09:16 AM
From: long-gone	Respond to of 116779

Josh All, If - WHEN - the shorts do get in trouble -hahahahaha Rich Wednesday February 14, 7:23 pm Eastern Time U.S. signals more hands-off market stance LONDON, Feb 15 (Reuters) - U.S. Treasury Secretary Paul O'Neill was quoted by the Financial Times on Thursday as indicating the Bush administration would take a strongly sceptical view of official intervention in global markets. Ahead of his first meeting with finance ministers and central bank heads of the U.S.'s partners in the Group of Seven leading industrialised nations on Saturday, O'Neill rejected the notion that crises were an inevitable feature of capitalism requiring an official backstop to help resolve them. He said in an interview that the failure to stop crises from developing was a failure to let markets operate freely. Although he was careful not to rule out U.S. involvement in co-ordinated currency market intervention, or in International Monetary Fund operations to help countries in financial difficulties, he suggested more attention should be given to using free markets to prevent crises from developing. ``Why do we have to intervene? Especially why do we have to intervene on a crisis basis? (Crises) are great media fodder but they're not real hot for anybody else,'' O'Neill said. He said he shared concerns about what economists dub ``moral hazard'', the process by which the certainty of a bailout in the event of a crisis leads investors to behave recklessly. ``When you don't have risk associated with investment you don't really have capitalism. You have a kind of socialised lottery system,'' O'Neill said. He expressed confidence that free markets should be able to forestall crises before they happened. Saturday's G7 meeting in Palermo, Sicily, will be the first since the Bush administration took office last month, and the first since U.S. economic growth slowed at the end of last year. The U.S. Federal Reserve has cut interest rates by one percentage point since the start of the year, and this week Alan Greenspan, the Fed chairman, expressed cautious optimism that the economy may have bottomed out. O'Neill expressed concern about immediate economic prospects but seemed optimistic that the U.S. would recover quickly. biz.yahoo.com