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

To: patron_anejo_por_favor who wrote (21326)	7/16/2002 8:25:29 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

<I eagerly await Rep. Paul's questioning the Fed Chairman tomorrow...it'll be a LOT harder for Greenspan to toss off a dismissive (if not frankly condescending) rejoinder to Paul's well-crafted and insightful inquiries. > Alan Green$pan is not patronising when answering the ignorant questions put to him by the members of Congress. I suppose he's like any expert trying to explain arcane intricacies to lay people - keep it fairly simple [though they still don't get it] without adopting a superior attitude. Mike, as usual, continues to fail to understand the reasons for the irrational exuberance, which was not fueled by money supply growth but by bidding wars, which anyone who has the slightest understanding knows can occur with zero money growth. One simply offers more money than the day before. It's very simple. So simple that anyone should be able to get it, unless they have ideological blinkers on. Having been one of the bidders, I know that it didn't require me to borrow money or have an increased money supply to raise my price. It's funny to see those imbued with their own self-belief, as wrong on the way down as the irrationally exuberant were wrong on the way up. Blaming it all on the great Uncle Al perhaps makes them feel better in some way. I would offer free psychotherapy services, but usually, people in cults don't want to be deprogrammed. Reality has a way of putting them back on the straight and narrow. Reality is a wonderful test and is the cruel strainer through which human DNA and memes have been winnowed since time immemorial. The process continues unabated. In fact, since there are now more humans alive than ever, the process is running at about 100x the rate of a few centuries ago. Because the critics of the great and wonderful Alan Green$pan are unduly venemous towards him, I feel free to offer the counselling their obvious emotional trauma and ignorance requires. If the critics were correct about the printing being responsible for the irrational exuberance, we would be right back in the midst of a boom right now, due to the rapid monetary relaxation and interest rate cuts. But we aren't. We aren't because their theory is wrong. All Uncle Al does is supply the inches. The measuring up and bidding is done by the wacko crazies who use the measuring stick supplied by Al. He has little influence on what they think Worldcom, JDSUniphase, Global Crossing and Amazon are worth. People were wildly enthusiastic about the telecosmic prospects and went nuts. When millions of people go nuts, it's impossible to keep them in the cage. Mqurice