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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: jluker who wrote (28001)	5/7/1998 12:18:00 PM
From: Knighty Tin	Respond to of 132070

John, I know that Abelson in Barron's was urging the Fed to use the rifle approach, raising margin requirements, instead of the shotgun approach, raising interest rates. The first only impacts financial inflation, the second kills the economy. I was advocating the same thing 18 months ago. Then Greenspan came out and said raising margin rates was no longer a tool he would use. I was shocked. It is like a boxer saying that he will no longer use a left hook. Yes, the new intra-day margins will make today's volatility look like a stroll in the park. I guess the day traders were not as much out of control as the Fed would like. <G> BTW, this unwillingness to use common sense on the part of the Fed and allowing day traders to bankrupt themselves more quickly are just going to add to the splat sound when this market finally hits. MB