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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (3431)	11/5/2001 11:31:09 PM
From: frankw1900	Respond to of 24758

Thanks.

To: ahhaha who wrote (3431)	11/6/2001 9:29:25 AM
From: DMaA	Respond to of 24758

The Fed is a chronic problem. So is banking. Will anyone, anywhere in the world ever come up with a banking system that works? I can't ever remember a time there wasn't a banking crisis somewhere. When the Federal Open Market Committee meets today it won't be arguing over whether we are in recession. The economy is weaker today than at any time since 1982. It will almost certainly end the meeting by voting to reduce interest rates again. This will bear the same results as all the previous rate cuts this year: none. Interest rate reductions alone are not enough to jump-start this economy. We need to make sure cheaper credit reaches the companies that need it. Credit rationing, not interest rates, is the real problem with the economy. The Fed's monetary stimulus has been hijacked by the bank regulators. These credit highwaymen aren't bad guys, they are just doing their jobs. The Treasury Department's Office of the Comptroller of the Currency (OCC), which is charged with regulating federally chartered banks, has a different agenda from the Fed. Its job is to protect bank capital, period. It does so with an army of bank examiners, who wield the blunt instrument of credit rationing inside banks. For more than a year, these regulators have been diverting bank reserves into Treasury securities instead of business loans, in hopes of restoring bank capital that was damaged by technology lending. Companies that rely on banks for working capital have been sucking air. . . . WSJ.