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

To: Skeeter Bug who wrote (28161)	5/14/1998 10:39:00 PM
From: geewiz	Read Replies (2) \| Respond to of 132070

But skeeter, is it the low rates that's created the bubble or the growth in the money supply? The only real inflation is in assets, so the real rates are actually high when measured against the CPI, although the government has changed this calculation to lower the increases in Social Security payments recently, it is still the only approximate gage of inflation in consumables. I have a hunch that the Fed is more certain of it's ability to contain inflation than deflation, so it is choosing a more familiar enemy. best, art

To: Skeeter Bug who wrote (28161)	5/14/1998 11:41:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Skeets, The original reason to lower rates was to save the banking system from disaster. That system may still be closer to disaster than Alan and the overpriced banks stocks would like us to believe. I can't think of any other reason for a man who criticized the Central Bankers for doing this sort of thing in the 1920s to do it on his own watch. Of course, there is always the possibility that Alan is basking in his celebrity and he realizes that 100% of it is connected to preventing the financial bubble from popping. MB