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.

Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (17243)	3/22/2002 6:48:07 PM
From: Ilaine	Respond to of 74559

Re: focusing on Fed. I am now reading about the Great Drought of 1930. Very severe. Caused terrible economic conditions in agricultural states, especially those growing cotton, tobacco, and livestock. Department of Agriculture kept an index of demand deposits in agricultural states. Treating 1929 as 100, it dropped to 67.4 by December, 1930 in the drought states (national average 89.4). Arkansas' bank deposits dropped by 41.6 percent. Blaming the weather isn't as much fun as blaming the evil central banks. Interestingly, Huey Long, the great demagogue of the Depression, hailed from North Louisiana, close to the Arkansas border. He did blame the evil bankers. But you can't do much about the weather.

To: GraceZ who wrote (17243)	3/23/2002 6:10:48 AM
From: mcg404	Respond to of 74559

Grace: <<Meanwhile, while everyone is focused on the FED they are ignoring all the other factors that allow inflation to get a foothold. This is what is so dangerous about the FED having such a high profile. People have almost completely ignored fiscal policy as the real boogey man. >> But it's so comforting to have a belief system whereby you can put your faith in the very smart AG and not have to worry about all the other intangibles. People always want their Wizard of Oz (even if they know on another level it is just a scared man hiding behind a curtain). Makes me think of the post 9/11 opinion poll results asking "do you think GWB is doing a good job?" Based on the results (and similar results for any other presidents during times of crisis), the answer really being given is to another question, "do you respond to the human tendency to put your faith in the designated leader during periods of stress and uncertainty?" So yes, the end results of this misplaced focus can be dangerous (imo). john