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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: stockman_scott who wrote (32068)	2/28/2001 9:29:54 AM
From: Jill	Read Replies (1) \| Respond to of 65232

Bizarre he says the only feature of the landscape that has changed is consumer confidence... Ignoring the huge amount of cash taken out of the economy by the NAZ collapse And ignoring all the companies forecasting much slower growth BIZARRE!

To: stockman_scott who wrote (32068)	2/28/2001 10:58:07 AM
From: thames_sider	Read Replies (2) \| Respond to of 65232

We are dealing with consumer and corporate spender psychology Agreed... but that is NOT the job of the Fed. The only requirements on the Fed are to promote "maximum" output and employment and to promote "stable" prices. (Source: frbsf.org It can't keep pumping in liquidity - that's what causes asset booms like 1998-2000, as credit becomes too easy to obtain. the willingness to be aggressive and support & stimulate the economy would go a LONG WAY in helping to bring back confidence, spending, and the stock market Again, I agree - but from a long-run aim of keeping the US economy stable, consumer spending is already too high - it exceeds consumer income. (The only validation IMO for private-sector tax cuts is if they are used to reduce debt...). And a falling stock market is not the concern of the Fed, unless it starts impacting the rest of the economy: meanwhile, the Dow doesn't seem so very far below its peak. Not that I like seeing my tech portfolio fall... I just don't feel the blame for that lies or should lie with the US Federal Reserve Bank...