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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Labrador who wrote (39986)	3/4/2001 8:59:50 PM
From: Rick	Respond to of 54805

Paul Krugman calls for Fed cut: NYT "Right now, seeing no evidence for a classic financial panic, the Fed has resisted calls for another emergency interest-rate cut. It is concerned, rightly, that it not be seen as reacting to every wiggle in the Nasdaq. But what if the new economy can have the functional equivalent of a financial panic, not in the financial markets but in business investment? Then the Fed's determination not to be rushed might turn out to be a big mistake. Military theorists like to talk about the "OODA loop" — that's "observe, orient, decide, act." If you can get inside your enemy's loop, reacting more quickly to the changing situation, you win. When it comes to stabilizing the economy, of course, we have met the enemy and he is us — our own propensity to irrational exuberance and self-fulfilling panic. Mr. Greenspan's reputation rests on his success in getting inside the economy's loop in crises past. But thanks to the technological changes he extols, the economy's reactions have gotten faster. It seems like a long time until that next F.O.M.C. meeting. So has the economy gotten inside Mr. Greenspan's loop? Maybe it's time for him to observe, orient, decide — and act." nytimes.com - Fred