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To: Mike M2 who wrote (120330)9/10/2001 10:28:57 AM
From: Tommaso  Respond to of 436258
 
I think we agree. Eventually, with no rate hikes at all, the bubble would have burst.

But the rate hikes were "tiny" only in comparison with the rates of some 20 years ago. A rise from 4% to 6% is a 50% rise in interest rates. Call it "tiny" if you want to, but it was enough to help shift some money gradually out of the equity markets.

I never have understood why the Fed refused to raise margin requirements for stocks.

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