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To: Raymond Duray who wrote (72422)	2/27/2001 3:00:31 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

I agree with von Mises and Hayek that the real disaster was the Fed's loose money policy prior to 1928, which caused, inter alia, the stock market bubble of the 1920's. The Fed started stepping on the brakes to prick that bubble, it is true, but it also started cutting rates immediately after the crash. But the loose money policy of the earlier years caused overinvestment in assets which fell idle, and remained idle. Credit expansion caused massive debt which could not be serviced. So what good did cutting interest rates do then?