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

To: Sam Citron who wrote (44074)	3/20/2001 4:54:15 PM
From: LemurHouse	Read Replies (3) \| Respond to of 70976

Well, Sam, I think that it is and has been that he wants to bring down the money supply which was allowed to grow in the late 90's and particularly in 1999, and which contributed in large measure to the asset inflation that ended rather dramatically last year. That is to say, I believe his agenda was to bring down stock prices and to deflate what he perceived to be a dangerously overvalued market. What I find troubling is the disingenuous and theatrical manner in which he tries to manage perceptions. At the same time that he so famously cautioned us about irrational exuberance three (?) years ago, he was expanding the money supply and directly feeding the inflation of asset prices. Now that the Y2K party is over, he has tried to bring down the bubble in a more or less controlled dive. I don't have a problem with that -- its better than having a big loud "pop." But its been accompanied by the same diversionary/obfuscatory language which keeps real meaningful discussion at bay. In addition, and I think more importantly, one can make the argument that it wasn't necessary to choke-off things quite to the extent that he did, and that the market -- not to mention the economy -- might have been spared much of the pain that it has endured for the past year. Granted, its easier to criticize the fed than it is to run monetary policy, but some degree of transparency -- and less political theater would go a long way towards improving both the markets and the economy IMHO. AD