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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: blake_paterson who wrote (25384)	10/16/1998 1:20:00 PM
From: 16yearcycle	Read Replies (2) \| Respond to of 70976

:" have not the all of past slowdowns (which have then resulted in fed easing) been the result of the fed having put an end to the party?" Of course there have been lots of reasons for recessions, but I want to suggest that REAL interest rates have been sky high the past 2 years, and resulted in decreased economic activity. The fed was too tight for a long time and now AG wants to make up for it. The pro's became horrified by how tight liquidity was starting in September. The fed is doing what it should to help; they were very slow to react. They were slow because they knew they would cause a bubble. AG knew he couldn't act until the market dropped or he could avoid acting if Asia recovered. Scenario 1 prevailed.