--- Erik Reuter <[EMAIL PROTECTED]> wrote: > Maybe, but how? During 1999 and 2000 as the Fed > raised interest rates > (and after Greenspan's famous "irrational > exuberance" comment), the > market continued to increase at a dramatic rate. > What more could have > been done to combat the madness of crowds? > > -- > "Erik Reuter" <[EMAIL PROTECTED]>
Greenspan should have raised margin requirements to cut down on speculation. This is, of course, 20/20 hindsight - and I think Greenspan has been probably the best Fed Chairman in American history. But he did have a tool he could have used to try and prick the bubble. A different question is - would it have been a good idea? He feels, and I think he might be right, that it's better for the economy to just ride the bubbles, because you get real and lasting benefits from them. This is true. The stock market might not be where it was in 2000 - but compared to 1995, we're doing really well. It's an interesting debate. I'm slightly on the side of him raising margin requirements - that might be a good idea anyways - but I understand why he didn't. Gautam __________________________________________________ Do you Yahoo!? Yahoo! Mail Plus - Powerful. Affordable. Sign up now. http://mailplus.yahoo.com _______________________________________________ http://www.mccmedia.com/mailman/listinfo/brin-l
