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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (1060)	11/30/1998 2:52:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 3536

So as evidence that Alan Greenspan has “abandoned” free market beliefs and now believes that governments should “protect” market players, we are offered the following: A. The Fed “bailed” out LTC by arranging its purchase by banks already involved; thereby protecting an already shaken credit market without using one dollar of taxpayer money. A move which I believe was unnecessary but disagreeing with me hardly makes one “the closest thing we have to a socialist”. B. Lowering interest rates one-quarter point in a “surprise” move designed to get the most “shock” bang for its buck. This is a practice very common in Federal Reserve history not only in interest rate moves, but in direct currency intervention. Since this surprise had been discussed here on this thread before it happened and heard in about every trading room in the country, it is a reach to say that it had a very large impact. Convicting Mr. Greenspan of the charges Mr. Lewis does on the above evidence is, yes, an absurdity. -Robert