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To: Scumbria who wrote (130228)	3/17/2001 10:16:14 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 186894

RE:"Greenspan induced a bigger drop than 1929" Only if he induced the NASDAQ Y2K bubble by pumping money. Normal DOW:Nasdaq ratio is 5:1. Went nearly to 2:1. His tightening was correct. IMHO. It had a lot less to do with the deflating NASDAQ than you think. A lot less. Now the Nasdaq will over correct. Dow is the major concern. Jim

To: Scumbria who wrote (130228)	3/17/2001 11:14:41 AM
From: Joseph Pareti	Respond to of 186894

>Greenspan induced a bigger drop than 1929. if my memory serves me well (and if not i can always refresh it by reading the "thread of fools") the market was at one one point in time worth 10% of its peak, say in 1932-1933 time frame. Translated into 2000 "currency" that would call for the NAZ pegged at 500 points at some point in time and staying there for a few years in the near future. BUT we witness a market of stocks rather than a stock market. Indeed if there is any truth in the past, that has already happened: the e-crap league is now 10% or less of what it was in the Ponzi heydays. (Presumably Meeker's salary is STILL greater than that, though) Monetary policy, like any other instrument, either in the mechanical or financial world, carries an inertia effect. It took a year to see the effect of tight policy and it will also take time to see the effects of lower rates. While I agree with Paul in that the May 2000 rates hike was an unnecessary blow to a robust, non-inflationary economy, I believe manipulation and "information sabotage" is the real evil of these days. AG is not guilty for this part of the equation. Those that read history may find a similarity between today's "information sabotage" and the "treason of state" in say, Henry VIII's times. What differs is that in those days methods to deal with the "problem" were more explicit and more to the point. What is identical now and in 1929 is that the street is essentially populated by the same fools, with or without PDAs.