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To: Venkie who wrote (101666)	5/14/2001 11:11:25 AM
From: pater tenebrarum	Read Replies (3) \| Respond to of 436258

Venkie, just to make one thing very clear: i'm sure not among those that 'hope' the economy will go to hell...what i'm hoping for is the best of all possible outcomes. i think however that the Fed has made numerous grave mistakes during the boom, holding rates at a much too low level and allowing credit creation to get completely out of hand, as well as introducing an asymmetric bias, read, moral hazard, into the market place. the damage has already been done, and in all likelihood is being aggravated with the most recent money pumping. the question is now whether the damage can be undone, and the answer is, no, not with this Fed. they're fighting the natural corrective forces tooth and nail, thereby assuring that the process of eliminating the accumulated malinvestments will be unnecessarily drawn out , to the detriment of the economy as a whole, and specifically to the detriment of all those who have been prudent with their resources during the boom, especially the savers. they're in effect saying to everyone, being prudent and cautious doesn't pay...you'll be punished if you do that. recklessness and irresponsibility is where it's at, because we're going to inflate the money supply at banana republic rates at the drop of a hat. if one assumes that this will continue to work indefinitely, one assumes wrongly. there is no free lunch - the longer it takes to pare back the excesses (i.e. the bigger the excesses get), the worse the eventual hangover will be.