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AG is responsible for guiding the monetary and interest rate policies of the
US and this includes managing and preventing excessive speculation and
consumption whether it be in banking, real estate, credit, or stock markets.
Allowing bubbles to build and then explode wrecks the economy for everyone,
not just the irresponsible speculators - clearly an area where government
has a responsibility to act. Early in his career, AG wrote some papers on
the crash of 29 which criticized the central bankers for allowing excessive
speculation and credit to grow unabated. Just a few years ago, AG had it
right when he spoke of "irrational exuberance", however he was unwilling to
pay the (probably very substantial) political price of raising interest and
margin rates to head off the bubble. Nor have our central bankers and
politicians been willing to bring an end to the import of endless cheap
goods which have held inflation in check and spurred consumption while
exporting a major portion of the US manufacturing base and building an
incredible trade deficit. Consequently, by most historical measures, US
equity and credit markets have bubbled to the point where a prick of the
bubble poses a serious threat to not only the US economy, but the world
economy as well.
When the bubble does burst, as it inevitably will, the retirement savings
and pension plans of at least two generations will be placed in jeopardy.
Not only are these generations at risk of losing their financial
independence, but government tax coffers shorn of the stock market tax
bonanza will be incapable of providing a safety net. Further, US workers
will wake up to find that few are in a position to support the huge US
service economy and that there are few manufacturing jobs remaining. In
short, what happened in Japan in 1989 won't begin to compare to what will
happen in the US when the bubble bursts.
Earl
----- Original Message -----
From: Gwenael Gautier <ggautier@xxxxxxxxxxx>
To: 'James Taylor' <jptaylor@xxxxxxxxxxxxxxx>; RealTraders Discussion Group
<realtraders@xxxxxxxxxxxx>
Sent: Tuesday, October 05, 1999 2:05 AM
Subject: AW: FOMC meeting?
> People make their own decisions and choices. Whether Mr G. was right or
wrong
> to make the decisions he made remains to be seen in hindsight, but it is
people
> who acted on their own buying these stocks, working for these companies
that
> lay off, did not start their own companies, did not buy the stocks,
speculated
> short term instead of holding long term, or bought houses and cars instead
of
> stocks, or the reverse, borrowed instead of saved. How can you say G. is
> responsible for what people do. As you mentionned most are irrational, and
do
> irrational things and then complain about unexpected results... Well, you
bet!
> That shouldn't be a surprise, but I don't see what G. is doing in there.
>
> Gwenn
>
>
>
> | -----Ursprungliche Nachricht-----
> | Von: James Taylor [SMTP:jptaylor@xxxxxxxxxxxxxxx]
> | Gesendet am: Tuesday, October 05, 1999 4:06 AM
> | An: RAY RAFFURTY; fritz@xxxxxxxx; RealTraders Discussion Group
> | Betreff: Re: FOMC meeting?
> |
> | If the scum-sucker Greenspan has any spine at all, he will raise
tomorrow,
> | and catch the gambling public flat-footed. This 'man' (and I use the
term
> | loosely) will be hated by tens of millions of American's when this ponzi
> | scheme finally ends. A heck of a lot of innocent, hard-working citizens
> | will be hurt by his past bubble cultivation. When the blind-sided
public
> | end up unemployed, their families put on the street, and hungry, this
joker
> | will think long and hard about the choices he made. I wouldn't want to
be
> | him. Rednecks don't act rationally when they are hungry and cold.
> |
> | Signed,
> | an informed student of economics and government mismanagement and
deception
> |
> | -------------
> |
> | At 09:42 PM 10/4/99 -0400, RAY RAFFURTY wrote:
> | >Hi Gary,
> | >
> | >Actually, to get a jump on the Fed. meeting tune into CNBC at about
8:00 AM
> | >EST for Mr. Greenspan's briefcase indicator. It has been correct
something
> | >like 18 out of the last 19 times. {;-)
> | >
> | > Good luck and good trading,
> | >
> | > Ray Raffurty
> | >
> | >
> | >----- Original Message -----
> | >From: Gary Fritz <fritz@xxxxxxxx>
> | >To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxx>
> | >Sent: Monday, October 04, 1999 4:34 PM
> | >Subject: FOMC meeting?
> | >
> | >
> | >> I'm holding a long position into tomorrow and I figured I'd check...
> | >>
> | >> The FOMC meeting starts tommorrow morning at 0900 ET. But there is
> | >> usually not any impact from the *start* of the meeting, right? Any
> | >> fireworks, if any are to happen, shouldn't launch until they announce
> | >> on Thursday at 1400 ET?
> | >>
> | >> The market doesn't seem to think Mr. G. will drop any bombs on
> | >> Thursday, given the run-up since Friday afternoon. Anybody want to
> | >> hazard any predictions?
> | >>
> | >> Thanks,
> | >> Gary
> | >>
> | >>
> | >>
> | >
> | >
> | >
|