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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (7164)	10/16/1998 2:36:00 PM
From: Zeev Hed	Read Replies (3) \| Respond to of 9980

Bosco, I have a lot of respect for AG and think he is managing the situation quite well. Few months back I mentioned that I thought he was in no rush of reducing the excessively high interest rates so he can use this weapon when really needed, in case of an impending or actual financial catastrophe. Well, he has been looking into his tea leaves (turnips anyone) and has decided that he sees enough trouble brewing that it is time to take out the big sticks. Luckily, he has ample room to maneuver because he was patient and did not reduce those rates as inflation was coming down. That is one of the reasons I have turned bullish again (but I am not sure I will like the beginning of next week, which I think will be influenced from a dollar weakening too fast and thus declines in Asian markets, those turnips again). Zeev

To: Bosco who wrote (7164)	10/16/1998 3:33:00 PM
From: Cynic 2005	Read Replies (3) \| Respond to of 9980

Dear Bosco, unlike Zeev and others, I do not have ANY respect for Alan Greenspan. Here is note I posted elsewhere: ------ The latest move by Greenspan proves the point that he is one of the most inept Fed Chairmen ever. In an article he wrote in the sixties he lamented the easy money policies of the Feds in mid 20s which he contends (and I agree) as the cause for the depression in the 30s. I personally think that he managed to repeat exactly the same mistakes. The easy money in the system was more than sufficient for a capacity glut in almost all industries and found its way to the top of the economy - financial markets. Without the backing of a fundamental support, any speculative asset pile, a la stocks, can only grow to some extent. When the mild profit taking turns in to a stampede to the exit doors, things turn in to systemic threat - as they are now. It is too late to act at this stage of the bubble than when it is controllable. Despite the fact the Greenspan delivered the infamous "irrational exuberance" speech, I think his real actions are a big suspect. He acted more like a politician who would pulse the public and then act up on them rather than being vigilant on the economy. Whether due to incompetence or ignorance or both, no one other than Mr. Greenspan is responsible for bringing the world economy to such a brink of disaster. (I can explain more on that later.)