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To: GST who wrote (122391)	4/2/2001 12:53:56 AM
From: schrodingers_cat	Read Replies (2) \| Respond to of 164684

> Don't be so sure that the Fed is on the side of the stock market and increased spending. I don't think the Fed is on the side of the stock market, except that they probably don't want to see it tank and pull the economy down with it. > Does the Fed want to stimulate spending or not? I think they want to keep the economy out of recession and if consumer spending drops then recession looks unavoidable. So yes, I do think the Fed wants to stimulate spending. However they don't want to be seen to be pushed around by Wall Street, so they won't give Wall Street everything it wants. I also think they want to avoid their policy mistakes of 87 and 97 when the Fed eased too much in response to a crisis and sowed the seeds of trouble further down the road. >We don't save Cat. We should. It might take a couple of years to learn. I don't think we will learn to save without a couple of years of hard times, and I don't think the Fed will put us through that on purpose. When credit is easy to get and jobs are plentiful, its hard to persuade people to save. More saving may well be desirable, but I think that it will be very difficult to achieve without much pain. Part of the trouble is that people have been lead into thinking that stocks are the best place for long term investment, without a real understanding of how long stocks can underperform. I think the stock market is likely to continue to be the first choice for many unless we get a multi-year bear.