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To: Fiscally Conservative who wrote (44932)	1/21/2006 11:52:28 PM
From: regli	Read Replies (1) \| Respond to of 116555

I believe that 9/11 was a convenient excuse to get the pumping going. As the economy was getting severely strained before as a result of the dot com collapse, the excuse was perfect. Without 9/11 it would likely have taken just another six months or so for the same policies to take shape.

To: Fiscally Conservative who wrote (44932)	1/22/2006 12:41:54 AM
From: TimbaBear	Read Replies (3) \| Respond to of 116555

Finallythere Do you think 9/11 played any role in our Fed's policy making these past years hence? Certainly,our President acted in a manner he deem appropriate and with a majority support of our Congressional body. Had this not happened,9/11 that is,I wonder if this fiscal picture would not have been entirely different today. No, I don't think 9/11 did anything but provide an opportunity for the Republican dominated Congress to find more venues in which to be fiscally irresponsible. Way before 9/11 Greenspan had testified before Congress that the tax cuts were a good idea. Way before 9/11 Congressional pork packing was out of control. All discipline that had briefly shown up in 1994 was a distant memory and those in line with their hands out for pork were legion. If 9/11 had not happened, the irresponsibility still would have occurred because there was no power to check its flow. The political party that prided itself on its reputation for fiscal conservatism was a distant memory. In its place was a party with the same name but unbridled, unrivaled greed and pork was now its game. There's no such thing as a free lunch but somehow I suspect that those most responsible for the tab will be nowhere to be found when it needs to be paid. Timba

To: Fiscally Conservative who wrote (44932)	1/22/2006 11:13:23 AM
From: mishedlo	Read Replies (2) \| Respond to of 116555

" Who's to say Bernanke doesn't come in and cut rates several times at 50bp per shot? How long would it take to crank the mania right back up?" Housing is toast. The FED can cut but it can not direct where the next mania would be. Gold? Possibly and that would not do a damn for the economy. Japan failed to reignite housing after it burst. I fail to see how or why the FED would be successful either. The money would do one of two thing or some combination thereof. 1) form a new bubble elsewhere 2) just sit with no borrowers and no lenders Mish