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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (29450)	11/29/2001 1:32:00 AM
From: FR1	Read Replies (1) \| Respond to of 29970

interest rates left to market forces would actually be higher That's true and in early 2000 the banks were raising rates because they did not like the risk they were seeing. But that does not mean that the FED needs to step in and try to force rates in one direction or the other. IMHO the FED should not try to intervene in the economy unless there is dire emergency (like war or inflation that is out of control). Instead, the FED thinks it is their duty to control the economy. Consequently we live in a government controlled economy and not a market economy. They pushed rates up to 6.5% and held them there even though most business leaders were screaming about the disaster it would cause. The FED wanted to see massive layoffs because they thought low unemployment would bring on inflation. You know it is a keystone cops out-of-control world when the FED says the correct interest rate is 6.5% and later in the same year says the correct rate is 2.0%.