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To: thames_sider who wrote (34888)	3/20/2001 12:32:57 PM
From: jambo-bwana	Respond to of 35685

Thames, I agree with your comments, for the most part. I think the liquidity that was created was in the aftermath of LTCM when the capital markets virtually froze. It was exacerbated by Y2K and the potential for disruptions. You are quite right that with the benefit of hindsight one could argue various scenarios. In my opinion what caused the current situation was more the bursting of the dot com bubble and the attendant spill-over into other market sectors with its corresponding effect on capital spending and consumer confidence. Greenspan has been remarkably adept in handling monetary policy. His actions after the '87 crash in ensuring the viability of the financial infrastructure - about three months after he became chairman - was one of the finest demonstrations of the effective use of the Fed's power.