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To: FR1 who wrote (168538)	7/20/2002 9:52:48 PM
From: BelowTheCrowd	Read Replies (1) \| Respond to of 186894

Of course, if the Fed really didn't want to get involved in the economy, they wouldn't have pushed tons of liquidity into the market after the "Asian Contagion" and LTCM fiascos in the late 90s, and they wouldn't have added even more liquidity "just in case" Y2K turned out to be a problem. Fact is, they did. And much of that liquidity ended up going into stupid venture investments and over-hyped but ultimately pointless stocks. Some of it went into good stocks too, sending them to unrealistic levels. And just as they were late to the party in helping us to "avoid disaster," all those times, they were also late to the party when it came to reining in the excesses they created themselves. They helped create the bubble as much as they helped pop it. IMO, this Fed and this Chairman have been terrible. He's still lauded as the "master" of the economy, but in truth all he's done is exacerbated all the moves, both up and down. Nobody was crying when he was pumping liquidity like crazy in an effort to avoid one imagined catastrophe after another, just as nobody complained about analysts when they only had good things to say. mg

To: FR1 who wrote (168538)	7/21/2002 12:28:58 AM
From: Ali Chen	Read Replies (1) \| Respond to of 186894

FR1: The scenario you have described looks like a typical case of excessive "user intervention" into a complex self-regulatory system that is close to a threshold of instability. Bad intervention, I would agree. However, it was apparent that that the unconstrained market system has shown all signs of blowing up. What evidence do you have that leaving it alone would do less harm to the American society? The market was obviously exploding, with no economical grounds. - Ali And why the heck anyone is going to talk to someone in Mongolia? (just kidding)