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Strategies & Market Trends : Ahh Canada - 2 out of 3 ain't bad -- Ignore unavailable to you. Want to Upgrade?


To: Dexter Lives On who wrote (1219)3/17/2001 1:24:25 PM
From: Davy Crockett  Read Replies (2) | Respond to of 5144
 
Panic may set in if the FED moves to 1%.... Greenie has never done a 1% move FWIW



To: Dexter Lives On who wrote (1219)3/17/2001 8:32:04 PM
From: Shack  Read Replies (2) | Respond to of 5144
 
why not do it all at once and get ahead of the curve?

Its funny how everyone thinks Greenspan is behind the curve simply because the stock market is tanking. The statistical evidence thus far has the debt bubble continuing unabated which is all lowering interest rates can do and are designed to do. The economy is tanking regardless. That's what happens when money is essentially free for years and is invested in non-wealth producing assets. I re-iterate...it was the LOW interest rate policies during the boom that resulted in an asset and credit bubble which will need to be unwound before a new bull cycle can begin.

IMO (and a likely hated opinion on this thread) the best thing for AG to do would be to RAISE rates, kill consumption which would collapse the economy and stock market. This would cause a severe recession but it would quickly ring out excesses so we can begin anew.

Or we can draw it out like Japan.