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A final post
related to the head of the Fed......Mr. Greenspan.
a couple of words
from the famed "Jimmy Rogers" from an article in SFO magazine (October)
recently:
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1) "Alan
Greenspan's history has been one of repeated failures..."
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2) "...now he's
causing the housing and consumption bubbles"
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3) "He was a Jack
Grubman.....he was just sitting there babbling like he was an
expert"
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4) "...he keeps
trying to avoid slowdowns, artificially, but slowdowns are natural and necessary
to clean out the system"
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5) "Alan
Greenspan will go down in history as one of the worst Federal Reserve chairmen
in history"
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<FONT face=Tahoma
size=2>-----Original Message-----From: Code 2
[mailto:Code2@xxxxxxx]Sent: Thursday, November 20, 2003 12:41
PMTo: Realtraders ListSubject: Re: [RT] Re: Fed
supporting market
It's difficult to respond to your statement
because of your lack of specifics.
Consider what happens when governments intervene
in stock markets. The myths of "easy money", "can't lose", "buy and
hold" and "cash is trash" are perpetuated and reinforced. Uninformed
investors (speculators, actually) take risks for which they are
unprepared. They mortgage their homes and run up their credit cards to
buy the latest crap-dot-com IPO. Now, the politicians have to pump even
more money into support mechanisms, because if those fools lose their houses
when the market gets its reality check, they will vote in a new batch of
political hacks.
On the other hand, no intervention means up and
down cycles continue, but they are not accentuated. Speculators
understand they risk losing their investment. When a market
drops, there is a cleansing and preparation of a firmer base for the next move
up.
I can think of no circumstance where government
intervention in the markets is not bad.
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Adrian
Pitt
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, November 20, 2003 1:32
AM
Subject: RE: [RT] Re: Fed supporting
market
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size=2>
<FONT face=Arial color=#0000ff
size=2>Wrong...an extremely superficial statement full or more holes than
you can imagine.
<FONT face=Arial color=#0000ff
size=2>Saying intervention is the problem is like saying guns are
bad.....and we all know how<SPAN
class=593043109-20112003> silly that
is.
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size=2>
<FONT face=Arial color=#0000ff
size=2>Adrian
<FONT face=Arial color=#0000ff
size=2>
<FONT face=Arial color=#0000ff
size=2>
<BLOCKQUOTE
>
<FONT
face=Tahoma size=2>-----Original Message-----From: Code 2
[mailto:Code2@xxxxxxx] Sent: Thursday, 20 November 2003 3:50
AMTo: Realtraders ListSubject: Re: [RT] Re: Fed
supporting marketThe Austrian school economists
would respond thatproviding liquidity *is* intervention, and that
anyintervention in the markets contributes to boom and
bustcycles. Intervention is the problem, not the solution
;)----- Original Message ----- From: "Terry B. Rhodes"
<trhodes3@xxxxxxxxx>To:
<realtraders@xxxxxxxxxxxxxxx>Sent: Tuesday, November 18, 2003
6:16 PMSubject: [RT] Re: Fed supporting marketAs others have
pointed out, providing liquidity is not thesame as intervening
directly to support the market. I haveconfirmed as fact that the FED
is legally capable ofintervening directly, but know of no confirmed
incidentwhere this has happened. This is the question i am
askingProviding liquidity is the standard FED response to
anyfinancial crisis, real or imagined. 1987, Y2K and 9/11 area few
examples of this.regards,tbr> The fact is
it did happen in 1987. The fed told the banks to> give
unlimited
credit.To
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