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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (43884)	3/16/2001 3:04:01 PM
From: LemurHouse	Read Replies (1) \| Respond to of 70976

I agree re the two levers being discount/fedfund rates and the money supply. Especially the money supply with respect to the last couple of years...the Y2K build-up and build-down. I certainly hope they increase the money supply at a reasonable rate and I take your word that they are doing so. But I really don't think there is much conviction at the fed that they need to reinflate the stock market. Plus, as you say, there is a great deal of pessimism that will be hard to overcome. Not market pessimism which seems to turn more or less on a dime, but pessimism with regard to the economic outlook, causing businesses and individuals to curtail spending. It becomes a vicious circle. I lay much of the blame for that on Greenspan and the fed's over-aggressive tightening of both rates and the money supply. Not that laying blame is going to make anybody a single cent. I seldom watch Louis Rukeyser (sp?) but he had a great moment a few weeks ago in which he used a medical term meaning a malady which is actually caused by the attending physician. (Can't remember the damn word though!) Anyway, he used that to describe the current market -- the problem being caused by the attending physician, Greenspan MD. Its particularly galling to watch his testimony theatrics and the posturing of the politicians. I'm not sure which are the bigger hypocrites. Ah well. This too shall pass. (I hope.) Meanwile I am waiting for the bargains and whistling past the graveyard. FWIW. AD PS: Anyone happen to know the word for a malady caused by the physician? Seems like a handy thing to know.