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

To: Kevin Rose who wrote (135324)	4/3/2001 11:45:18 PM
From: rich4eagle	Read Replies (1) \| Respond to of 769670

That is total BS, he tightened because things where way overheated! He wasn't the knuckelehead on CNBC telling everyone the target price on Yahoo was 400, it was Henry Blogett and he was employed by Merrill Lynch America's most respected financial instituation. SO who is bullshitting who!!!!!!!!!!!!!!!!!!!

To: Kevin Rose who wrote (135324)	4/3/2001 11:46:05 PM
From: Little Joe	Read Replies (1) \| Respond to of 769670

Kevin: "If it is not AG's job to fix the stock market, why is it his to destroy it? His cure for 'irrational exuberance' was 'irrational tightening', resulting in 'irrational fear'. Now, his inconsistent statements of monetay policy (the 'surprise' Jan lowering, followed by a reassuring statement that 'the Fed is on top of it', followed by a total lack of leadership or even common sense monetary policy)." AG simply does not have the power you impute to him. The plain fact is that anyone who has followed markets for a long tme knows that what we have just gone through was a classic bubble burst. There is no way the market was going to sustain the ridiculously high PE ratios of the last few years. Cisco, a very good company, was trading at 100x earnings. The underlying reason that stocks change in price is the ability of the company to produce profits commensurate with the investment made. During bubbles people lose track of this fundamental truth. I have never seen a top in the market where the bulls mantra wasn't that it is different this time. There is some special circumstance that will grant everlasting prosperity. Let me give you an example using Cisco. Suppose I came to you and told you I had a tremendous investment for you. Give me a Thousand Dollars and I will pay you back in 100 years. After that you could start earning a return on your money. Of course, I am making no guarantees and something could change in the next hundred years which would result in the loss of all of your money. Would you take me up on the investment. Well, everyone who buys Cisco at 100x earnings did. It was clearly a stupid investment and yet people did it. AG did not cause this. Ignorance and greed caused it. People who do not understand this, should not be investing in the stock market. Little joe