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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Patrice Gigahurtz who wrote (81469)	8/18/2001 6:43:40 AM
From: Steve Lee	Read Replies (1) \| Respond to of 99985

Seeing as this slowdown is one of overcapacity rather than lack of demand (evidenced by low factory and fab utilisation rates, high levels of consumer debt, consumer confidence & consumer spending), how would not raising interest rates have helped. Wouldn't it have encouraged companies to invest in even more overcapacity, and consumers to spend even more beyond their means? I believe it would have led to a bigger bubble, that would have gone on for slightly longer - but it would still have had to burst.