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Politics : Sioux Nation -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (16749)	5/12/2005 12:17:43 AM
From: DavesM	Read Replies (2) \| Respond to of 361382

CR, IMO you are wrong. The market crash that began in early 2000 was massive. It was an event that virtually no people have seen in their investing lifetime (unless they invested in foreign markets). The last time American markets saw a crash like that was 70 years ago. That crash triggered the greatest economic hard times in U.S. history. The interest rate on Government Bonds went NEGATIVE (as in a negative interest rate) at one point - during the Great Depression. There is a point, during a crash, when lowering interest rates have absolutely no effect - I'm sure the Fed knew this and that is why it acted quickly and forcefully. And this is why IMO, the Fed did not object at the time, to the tax cuts. In such a situation, balanced budgets should be the least of your concerns.