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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Bill F. who wrote (50803)	3/9/1999 1:34:00 PM
From: Cynic 2005	Respond to of 132070

Bill, you talked so much about moral hazard, or lack there of, in this market. I thought you would LOVE this piece! (got it from the Gold Price Monitor thread.) This quote more or less reflects the Fed policy as well. <<The fact that most major equity indices returned to near-peak levels in December suggests that the systemic repercussions of the upheaval were contained. Market participants themselves have been prompted to review previous assumptions concerning liquidity, credit risk and the correlation between markets, and to put greater emphasis on stress testing as well as on fundamental analysis. In addition, measures have been taken by the official sector to address immediate and longer-term weaknesses in the international financial system. However, recent events have also heightened the dilemma faced by the authorities in turbulent circumstances. On the one hand, it is recognised that private players should bear the cost of their own investment decisions. On the other hand, official action is sometimes needed to restore market confidence and preserve the stability of the system as a whole. The improved management of future crises will depend on the resolution of this dilemma. bis.org