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Strategies & Market Trends : Mu Gamma Lambda -- Ignore unavailable to you. Want to Upgrade?

To: Libbyt who wrote (5824)	9/8/2001 12:53:25 AM
From: Lazarus_Long	Read Replies (1) \| Respond to of 10077

The Fed has expended its ammo. There comes a point when cutting rates is like pushing on a string. Japan got there a decade ago; we are now at it. The alternatives at this point seem to be gov't economic stimulus (tax cuts + public projects) or toughing it out and letting the economy find its own way out. While the second is probably preferable, I don't believe for a second that's what will happen. Politicians will bend to pressure and can't resist the headlines. The market set interest rates in the last century. The usual belief is that that did not work well- -bubbles followed by economic collapse. (Uh, that sounds familiar.) Many, many other economic matters besides that also functioned differently then. Maybe the usual take is wrong. Is this too heavy for this thread?