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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: William Hunt who wrote (129848)	3/13/2001 4:14:58 PM
From: Road Walker	Read Replies (3) \| Respond to of 186894

Bill, re: "Interesting that Greenspan took a lot of the credit when the economy was strong yet he is not at fault when his action started the ball rolling south." The FOMC, in my opinion, has always been reactive to the economy, not leading it. A good argument can be made that the Fed was behind the curve with their last rate increase, and behind the curve when they didn't cut in December. But they were reacting, albeit slowly, to what the economy was doing. When you look back to the 12 month period between mid-1999 and mid-2000, the economy was growing faster than it could sustain. As an example, PC sales were growing at a 30%+ clip, far above their average yoy growth rate of about 17%. Same thing was true for the rest of technology, sales were growing way above their historic rate. Everybody was worried about component shortages. Growth is not unlimited. It's a pretty normal end of cycle situation, and when it ends you have a glut of material and capacity, until the normal growth can catch up. The same thing was true for the non-technology economy, end of the business cycle. I guess I can reverse your question. If you are going to blame the FOMC for the current recession, are you will to give them credit for the 10 year expansion? If so, it's a pretty good trade off, IMHO. Did you sell all your stocks when rates were being raised in the spring of 2000? If not, you must have agreed, at that point in time, with the FOMC that the economy was resilient enough to handle the hikes. Mr. Greenspan is a real easy target for anyone unhappy with their portfolio. When their stocks were up, they thought they were clever. Now that their stocks are down, Greenspan is to blame. John