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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Kip518 who wrote (32314)	10/24/1998 12:10:00 PM
From: HairBall	Respond to of 94695

Kip: Thanks an interesting read. Have a nice weekend. Regards, LG

To: Kip518 who wrote (32314)	10/24/1998 3:08:00 PM
From: Haim R. Branisteanu	Read Replies (3) \| Respond to of 94695

Who is the Blind?? maybe the Economist (they just dislike us <gggg>) Alan in bubbleland The truth is that financial bubbles, unlike fairy tales, never have happy endings. Mr Greenspan cannot prevent a bear market with a mere wave of his wand. From the 17th-century Dutch tulip mania through to emerging-market madness and today's Wall Street, bubbles always burst eventually, — and the result is always painful. Wall Street's tumble since the summer has been widely blamed on financial troubles in emerging markets. If so, goes the argument, brighter prospects in Asia and an IMF package to rescue Brazil should push share prices back up where they were. Yet in truth, America's bubble was inflated at home. For over two years the Fed all but ignored the explosion in share prices and lax credit conditions. And to the extent that America's rapid economic growth in recent years has been fuelled by a splurge of credit and by large capital gains, both its economic and its financial boom remain unsustainable. A sharp slowdown is inevitable; a recession is distinctly possible. Some commentators now seem to view Wall Street as a gauge of whether the Fed has got things right. A rise in share prices is taken to mean that Mr Greenspan has understood what needs to be done to avoid troubles ahead. But this is a bad test. Central banks cannot and should not try to prevent an overdue correction in share prices. They should only cushion the economy from the worst consequences. The zeal with which Wall Street has cheered Mr. Greenspan's latest rate cut shows that investors still miss the point: even in fairy tales, what goes up does eventually come down. Oh well Not MY YHOO, DELL, CSCO, AMZN, LU, AOL, MSFT and other pundits. We are in America <gggg> even Hong Kong finally learned from us and hopfully Japan <ggg> Bail out your Friends and all will be OK HAim