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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: MarkM who wrote (15721)	5/15/1998 9:38:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 18056

Mark, see the article in the Economist 4/18 "America's bubble Economy" and The Economists 5/9/98 p.78 . I agree that the Fed should raise rates and should have raised rates long ago to limit the inflation in the financial mkts. The question is will they raise rates? I don't believe so, in spite of all the talk about the Fed's "independance" it was created by politicians and responds to them. The Fed odes not want to be blamed for a mkt collpase even though their easy money policies created this bubble. The politicians love this bubble because everyone feels so good they fail to understand the simple maxim "the bigger the boom the bigger the bust" -history proves this to be true. In order to condone this current speculative orgy one must believe in new eras -I don't Here is a link to what AG said about Fed policy in the 20's before he became a banker for the politicians fame.org I don't think the mkt is worried about a rate hike but it may go nuts when the Fed talks tough on inflation but does nothing. Mike