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

To: JF Quinnelly who wrote (60444)	5/24/1999 4:03:00 AM
From: Tommaso	Read Replies (2) \| Respond to of 132070

Actually those were Friedman's own words that I used: "Just print money." I think it was a piece in Forbes some time in the past year. I guess Burke is right, though, about the need for people to be willing to spend the money. Problem with understanding and explaining economics is that everything is a variable and everything causes something else.

To: JF Quinnelly who wrote (60444)	5/24/1999 9:51:00 AM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

JFQ, >>the Fed should have embarked on large scale open market bond purchases to counteract the contraction of the money supply caused by the demand for cash by the public and the desire by banks to raise reserves.<< I did a little research on the 29 crash last year because I've heard that claim and I've heard that they tried but it didn't work. I reprinted a bunch of articles from the NY Times during that period. There are several articles about the FED being extremely active in repurchasing treasuries and adding liquidity to the system to counteract the effects of the crash. Of course I couldn't reprint several years worth of stuff, but I think it's a slight bit of revisionist history on some economists' part to say that the Fed wasn't trying to increase liquidity during that period. They did. It just didn't work. Maybe they made mistakes later on. I am not sure. Early on, The Times was actually reporting that people should not be worried because the Fed was very active in its efforts to add liquidity. Wayne