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Strategies & Market Trends : Bill Fleckenstein, the BEAR! Is he finally right? -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (52)	9/3/1998 5:12:00 PM
From: Bald Man from Mars	Respond to of 259

As long as my portfolio does not go down the tube, then Greenspain can do anything ...

To: The Ox who wrote (52)	9/3/1998 5:43:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 259

MH, first of all, the Fed's mandate is not to lower the rates whenever a bunch of greed driven speculators in the world are hurting. The problem is not lack of credit. The destruction you are seeing is due to excess (loose) credit. A rate cut at this juncture will almost guarantee a severe depression down the road. May be we are at that juncture already. It is naive to think that a rate-cut will solve the problems. A liquidation of excess capacity will. It can't happen with further easing. Also, given the severity of the excess capacity problem, I wonder if there is a need for borrowing at all. After all, how many houses and cars can one buy? If any thing, it will go in to financial markets, perhaps creating even bigger bubble. The best thing to do at this time is to let a recession arrive and flush out excessive speculation and profitless enterprise from the system. -MMV