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To: fedhead who wrote (12940)	7/23/2002 8:45:04 AM
From: BGR	Respond to of 57684

And push up the budget deficit in the process. Which will then push up the interest rates. And which will then be a heavy drag on the economy's nascent recovery. Right!

To: fedhead who wrote (12940)	7/23/2002 9:33:10 AM
From: 16yearcycle	Read Replies (1) \| Respond to of 57684

Anindo, not sure what they can do now. Probably this simply has to run its course. There were three major FUNDAMENTAL errors the Fed did to help cause the environment for this, and they simply can't be repeated: the pumping of massive liquidity at the end of 1999; the incredible 3 months miss in cutting rates at the end of 2000; and not increasing margin requirements about mid 1999. What to do now? I think everyone knows that if Greenspan has said last week that we now have irrational pessimism, it might have helped to end this. I think the cap gains suggestion is good. I think giving the telecom companies a bill that gives them huge breaks on investment and taxes would help tremendously, because I think that the depression in that area is at the core of the meltdown. It's tough to fix massive errors. And what needs to happen is a change in sentiment...hand out anti-psychotics?

To: fedhead who wrote (12940)	7/23/2002 2:32:15 PM
From: paul_philp	Respond to of 57684

Anindo, Well that would all be good. It would sure spark a massive rally. Unfortunately, the zero-sum liberals would pull out their Phillips Curves and scream budget deficits until November. Paul