Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Thomas A Watson who wrote (174355)	8/25/2001 8:54:56 PM
From: DavesM	Respond to of 769670

A possible unintended consequence of surpluses. We remember Chairman Greenspan raising rates trying to slow down the bubble economy. At the same time, the Treasury due to the budget surplus, was probably buying back long term treasuries. In effect lowering long term rates. This means one end (the FED)was trying to raise short term rates, while the other end (the Treasury Dept) was lowering long term rates. Couldn't this have been a reason that Chairman Greenspan had to over tighten rates?