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What's a Fed to do ?
That is the question. Just like the phrase in their pamphlet on trying to
explain the massive government debt, they say, "Well what should we do ? --
Well that is for you do decide" This total inept, cop-out, sickens me.
The Fed, led primarily by Alan Greenspan got us in this mess, by flooding
this country with easy credit/loose monitary policy, and not raising
interest rates as this bubble took shape back in early 1990. Now the Fed
is in the bubble management business, afraid to take any action in fear of
popping the bubble (that inevitably will pop no matter what they do), which
has made it worse as it grows practically each day by 2% or more.
All of this talk about Greenspan not being to blame is nonsense, IMHO.
He is public enemy numero uno. Millions of people will suffer as a result
of the collapse of this bubble, these folks didn't play the market, they
will lose their jobs/homes/livelihoods.
The casino like mentality spawned from this bubble has hurt this country.
I just hope that he will eventually be recognized for what he is, and what
he has done to this country.
James
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At 07:23 AM 12/23/99 EST, you wrote:
>What is the Fed to do? Japan tried to 'slowly' burst their stock and real
>estate bubble back in the early 1990's. As you know, you can't slowly
burst a
>bubble.
>
>If the Fed raises rates too high and slows the money supply the market will
>eventually fall. They have taken the chicken way out by raising interest
>rates and increasing the money supply. The higher borrowing costs of
>interest rate increases have been offset by easier money. I believe once Y2K
>passes, assuming no major disruptions, the Fed will turn off the money
spigot
>and then the market is living on borrowed time. This may mean that Norman's
>projected top of the end of February will work as the market pushes higher
in
>January and February for one last burst.
>
>Fed Model now shows stocks 58% overvalued!!!!!!
>
>Just one scenario,
>Howard Bernstein
>
>
>
>
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