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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: NOW who wrote (8072)2/13/2004 6:09:29 PM
From: Jim Willie CB  Read Replies (1) | Respond to of 110194
 
I think Greeny is attempting to do the best job managing a disaster that he can
I doubt he realized in 1996, by switching from money supply mgmt strategy, that he would set the world's economies into the dead zone of liquidity traps and competing currency death

he used to have a limit of money aggregate growth no greater than the GDP growth, except during recessions

then in 1996 he switched to a strategy that allowed much greater money growth, limited by the CPI

since the CPI remained subdued as the US$ rose and import costs dropped, he unwittingly built a stock bubble and an Asian mfg overcapacity bubble

the rest is history
respond to a broken US stock bubble with two giant new bubbles (bonds and housing) and the let the dice roll

/ jim