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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (5580)	11/6/2002 4:17:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

Tyler Mathiesen, referring to interest rates, says, "we're running out of room in case the US invades Iraq". Somehow he and all talking heads on CNBC believe that cutting interest rates creates money. How many times do I have to say it. It doesn't. I said in a PM: Don't fall into this Michele Cabruso Carrera error. Interest rates don't matter as long as there's no loan demand. Effective rates are zero without loan demand. If any interest rate move has no consequence, how can you conclude there's "less place to go"? You're making the old mistake of identify monetary policy with interest rate policy. The two are only coordinated during a demand regime. We don't have that in place now and haven't had it in place for 3 years. When will it dawn on someone that we have an over supply of money? When it does maybe someone can remind me why I stated that FED should raise rates a year ago. It's clear I have lost everyone. Just shows how uneducated everyone is. Considering that Galbraith was chair of econ at Hahhahad, what else can be expected?