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

To: Merritt who wrote (57514)	4/26/1999 9:23:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Merritt, >>I don't agree with that assessment; who's AG's boss? Who keeps mindlessly throwing money at the Index Funds? << It's true that people are behaving quite recklessly. It's just my view that the liquidity and easy credit provided by the Fed is at the core of their ability to behave like this. As you stated, they now have less fear because of their belief that the Fed will always come to the rescue. But it is also a matter of the degree of excess. Without the easy credit the bubble simply couldn't have gotten this big. I also understand the politics. You are probably correct that it was a contributing factor last year. Then again, it wasn't a factor when he uttered "irrational exuberance" at the end of 1996. The market has been running for quite a long time and he simply painted himelf into a corner by doing nothing about it then and not resisting the political pressures later on. If the U.S. Fed isn't at least mildly independent we are in really big trouble. Politicians can always be counted on to do the most irresponsible thing if it benefits them in the short term. I lay most of the blame at "Easy Al's" feet but I get your point. WC