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Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?


To: Alan Bell who wrote (2569)6/9/2003 9:55:45 PM
From: Lone Ranger  Respond to of 10065
 
AB,
"What are the chances that Greenspan will overreact to these disinflation concerns?" You're right, he is and hopefully he will continue.<g>. Don't let that scare you. Here's why. It's relatively easy to correct an inflationary economy. We have lots of experience with that. You must err on the side of least damage if you are wrong. Once an outright deflationary economy occurs it is much more difficult to correct. The Japan study confirms this. You must use all means at your disposal to prevent this from occurring. The Fed is, and will continue to do so. The Fed will succeed at reflating the economy. They realize there is no other choice. They've said it and they will do it. No doubt about that.