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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Rose who wrote (133414)	3/25/2001 1:06:45 PM
From: Nadine Carroll	Respond to of 769667

Kevin, As a wise man once said, if a trend is unsustainable, it will stop. You need ever expanding levels of credit to sustain a bubble, and if you look at the money supply, Greenspan certainly has been trying to print enough money. It was Greenspan's job as a central banker to prevent a bubble, and he muffed it. Saying that Greenspan should now print faster and cut rates more is like saying "avoid hangovers, stay drunk". It doesn't work permanently. As for the rate increases last year, consider that the first three increases merely took back the emergency rate decreases of October 1998, when Greenspan effectively wrote a put for the whole market. If you advertise that you will bail out irresponsible speculators, it hardly encourages responsible behavior. No, Greenspan tried to pop the bubble gently with three baby-step increases. It is just the nature of bubbles to pop hard.