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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?


To: dvdw© who wrote (10360)12/18/2007 2:02:36 PM
From: ahhahaRead Replies (1) | Respond to of 24758
 
The question is, how long will they wait before they do this, and, will they first lower in order to juice things up. That's what they did in the late '70s. They kept pumping to hold rates from rising which otherwise would cause recession. As they pumped inflation rose as people used the money to speculate on rising prices. Inflation caused the lenders to withdraw supplies of money so FED had to compensate, else recession. In the final analysis FED stopped fixing the price of money and let it float. ff went to 21% when FED quit price fixing and started to control
the amount of money their pumping was provoking. The result: the worst recession since the depression, a recession one never hears about now. FED caused the very thing which they tried to avert.

Where have I heard that before? How about in RE.