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To: patron_anejo_por_favor who wrote (106127)	6/2/2001 4:37:38 PM
From: Ilaine	Read Replies (2) \| Respond to of 436258

You may not have been paying attention, but I was talking about risky money market funds months ago. That's not Noland's point, at least I don't think so. He's on the same book and page as Magner - "da bigger da boom, da bigger da bust." One of those laws of nature, don't you know. I don't give a damn about his predictions about the future. He's entitled to think whatever he likes. What irks me is that he completely mis-states what happened to the money supply in the 1930's. It didn't just go away due to natural causes. The Federal Reserve deliberately reduced it in order to "purge" "speculative excess" - as did the Treasury. The process that Noland claims was normal and inevitable was caused by deliberate government action. The stock market crash was caused by deliberate action, too. 10 weeks prior to the Great Crash, member banks of the Federal Reserve Bank of New York cut back all collateral loans as well as loans to bankers. They did so at the request of the Federal Reserve Bank of New York, which was ordered to do so by the Federal Reserve Board in Washington. This, along with jacking the Fed discount rate from 5% to 6% finally broke the back of the stock market. To me, blaming the Great Crash and the Great Depression on investors and speculators is like a wife beater blaming his wife because he beats her. I call it blaming the victim. Like a wife beater, a central planner is sure that he knows what's best for his victim, and is only causing pain in order to do good.

To: patron_anejo_por_favor who wrote (106127)	6/2/2001 7:50:07 PM
From: KyrosL	Read Replies (2) \| Respond to of 436258

I find Noland's articles interesting but definitely biased. Very rarely does he mention the Federal budget surpluses that have converted the US into a model country from a fiscal standpoint, and made the US public debt as a percent of GDP the lowest by far compared to any other developed country -- you get a much different picture of the US credit situation if you include public as well as private debt. Nor does he mention the fact that the low unemployment has lifted and given hope to millions of people that had previously wallowed in welfare for generations. And he does not mention the drastic decrease in crime, which is approaching generation lows, and is in large part due to generation low unemployment rates. There are lots of good things associated with the bubble. If Greenspan manages to deflate it in an orderly fashion he will be a hero.