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To: Les H who wrote (70985)	3/2/2001 9:48:01 AM
From: Les H	Read Replies (1) \| Respond to of 99985

Begging for the Greenspan put pimco.com

To: Les H who wrote (70985)	3/2/2001 10:58:40 AM
From: Tunica Albuginea	Read Replies (1) \| Respond to of 99985

Les,Re:" Greenspan waves the white flag " msnbc.com This MSNBC article confirms my suspicions: The Democrats' hope of forestalling Bush Budget and Tax Cuts lay completely on Greenspan's ability to rapidly lower rates, to jump start the Market, reflate "the wealth effect ", make Americans feel better, and thus undermine psychologically "the need for tax cuts " in order " to save the economy ". I believe MSNBC is a liberal tax and spend center. So is it's sister ( brother? vbg ) station CNBC which this morning had " the investing citizens of America Club " trying desperately to pump the Nasdaq up and maintain "the wealth effect feeling ", by telling the audience that buying the market now was a good idea. I think it now appears that with one more month ahead of preannouncements, with the Naz hovering on the brink of precipice of 2000, all we need now is a sneeze to roll over. Certainly, multiple bad news ahead ought to deal the final blow. Democrtas are now in full panic mode as the Bush Tax Cuts and Budget Diet ( a diet; not a cut/starvation ; the monster is still eating ) are becoming more likely, All IMHO. This is not intended to strike at my good Democrat friends' sensitivities. We agree to disagree, :) cheers TA

To: Les H who wrote (70985)	3/2/2001 1:10:15 PM
From: Psycho-Social	Read Replies (1) \| Respond to of 99985

Greenspan in the 1990-91 Recession: Kept interest rates steady until mid-December of 1990, approx 4 mo after the economy began contracting. If memory serves me correctly, he acknowledged the existence of the Recession sometime in early 1991. Lowered interest rates 5 times in 1991 and once more in mid-92. If past behavior predicts future action, the Fed (and Congress) may be late getting started, especially given the 6 mo or so lag time involved, but they may continue fighting the recession long after it's over. The political pressure to combat economic weakness is usually generated by rises in the unemployment rate, which is a lagging indicator. Also, the inflation rate, which tends to stay the Fed's hand when it's high, tends to decline during and just after a recession. Conclusion: We may have the worst of all worlds now, but stimulative policies may continue well after the recession/soft-landing ends.