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To: tonyt who wrote (31330)	12/28/1998 3:25:00 AM
From: Gary Walker	Respond to of 164684

>How can you possibly blame the Fed for 'speculation' in net stocks.. Because of the timing of the easing, which in hindsight was too early. Another month of no action would have crushed the speculation and set the stage for a new bull market with lasting power to produce capital for less speculative shares. Part of the Fed's responsibilities as I remember is to control the margin levels on stocks. I don't think they can regulate by sector as you suggest. Implied in this responsibility is to discourage the types of excess speculation seen during the bubble in '29 and today. The brokers and analysts are not paid to discourage speculation in fact the opposite is true. The Fed on the other hand is responsible. There's no law that says that analysts cannot say a stock will be worth $1000 a share unless it's outright fraud. What happened isn't as important as what's going to happen next. I'm half expecting another comment or two from Greenspan on the concern about the level of speculation in the market. gw