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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (19200)	12/9/2003 7:35:10 PM
From: unclewest	Respond to of 793725

The fed was way late. The Dow and Nasdaq stock market crashes began in January 2000...over a year before Clinton left office. What Greenspan & Co. may have done is to avoid a third big blunder. So much was beginning to go wrong with the economy at the end of 2000--and the rest of the world was so dependent on the American economy--that a timid reaction from the Fed might have been fatal. It might have further weakened both spending and spirits. But the Fed responded forcefully. It cut interest rates 11 times in 2001 and once again in 2002 and 2003. The Fed funds rate (on overnight loans between banks) went from 6.5 percent in late 2000 to its present 1 percent, the lowest since 1958.