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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (12156)	3/19/2001 1:11:08 AM
From: 16yearcycle	Read Replies (2) \| Respond to of 37746

Actually it is amazing how exact the comparison is so far...the fed overtightens for two years almost solely to reduce speculation, despite no inflation. The fed then allows the crash to occur and waits....while one market index collapses by 58% before it does anything. The fed then does 2-3 aggressive cuts, as it did in 29 and 30, it did indeed cut several times, and expects that the market will correct the rest of the imbalances. But this is where comparision ends. the fed TIGHTENED in 31, twice. The fed also never loosened up the money supply itself in the early 30's, while it is pumping it some now...not a lot yet. It is coming too close to making the same mistakes, but I think the similarities will end over the next few months as they keep loosening supply. geocities.com