Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: michael97123 who wrote (159547)	3/24/2005 8:43:40 AM
From: Keith Feral	Read Replies (1) \| Respond to of 281500

Anyone that thinks there is an inflation problem in the US needs to take a look at the employment situation. BTW, I took out my interest only loan 5 years ago when my fixed mortgage was around 7 1/2 %. It won't take Greenspan long to screw up the economic situation in this country through his tireless charade of interest rate manipulation. He is thoughtful, but is living out of a hedge fund comic book. He needs to apply some degree of consideration to economic reality. Raising interest rates in the face of an energy crisis is a double whammy. Free market capitalism requires a steady hand. No reason to make people pay higher mortgage rates at the same time they are paying more at the gas pump. If Greenspan is concerned about excess leverage and high spreads in the credit market, he needs to find a new vehicle to attack, namely, margin rates and reserve levels. He would do far more good to limit excess borrowing by the hedge funds to decrease their leverage. I have read quite a bit on the subject from Pimco's McCauley. It makes a lot of sense.