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To: BGR who wrote (105414)	5/29/2001 5:36:16 PM
From: yard_man	Read Replies (2) \| Respond to of 436258

it's not what is doing wrong here, BGR -- goodness sake -- how long you been haning around here? He is easing now to save a gargantuan bubble that he helped to create along with a bunch of other willing participants. This thing has been in formation at least since 96 -- You're simply asking the wrong question. Look to the balance sheets of individuals and corporations and ask yourself how things got so d&mn out-of-kilter ... ya don't suppose artificially low interest rates or easy money had anything to do with it, do you?? Greenspan could allow a real correction to proceed here. A short deep correction could be accomplished if he'd lighten up on the tap a little, but he can't give up his status as a god ... so it's not over until no-one wants to take on more debt. We'll get there give it another 6 months to a year ...

To: BGR who wrote (105414)	5/30/2001 1:10:49 PM
From: craig crawford	Respond to of 436258

>> So, what is Greenspan doing wrong here? << Greenspan has done wrong for quite a while, not just here. >> Would you rather have Heinz as the US Fed Chariman when there will be no inflation all right, but perpetual Great Depression will be the norm? << The point is, if AG hadn't gone on a printing binge and then bailed out the markets every time they hiccuped, we wouldn't have to have a depression. For instance, most people said he made a mistake by not cutting in Nov/Dec last year or they think he was wrong for the last 50 bp hike. I maintain that we would have been ten times better off today if he had just let the market work out the excesses in the 90's and not interfered. AG shouldn't bail out banks every time there is a currency crisis, and he shouldn't be in the business of bailing out hedge funds either. The markets are quite efficient at resolving the issues of risk unless interfered with by central bankers, who only make matters worse by prolonging the natural corrections. Look at Japan. They won't take their medicine and clean out their system. Look where that's gotten them. Look at what Greenspam is doing. He won't let the market do what it wants to naturally do. Clean out the excesses once and for all and establish more reasonable parameters of risk. Everytime the market tries to flush itself out and detoxify he just loads up the syringe and gives it another shot of heroin. We are doomed to repeat the mistakes of past bubbles I'm afraid.