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To: philsfan24

Greenspan was watching the stock market and fearful of "Irrational Exuberance." Decision: increase interest rates.

Now Bernanke is watching oil and gold prices like a commodities trader and continuing to raise the discount rate as well.

Good trading opportunity. Yet, U.S. macroeconomics may suffer next year from this more than interesting monetary policy. The focus should be on the money supply, not interest rates.


16 posted on 06/06/2006 9:21:05 AM PDT by gipper81
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To: gipper81

Greenspan did not increase interest rates because of irrational exuberance.

He increased rates because that's the only way to keep foreign investors buying T-bills at the treasury auctions.

And if the dollar falls more, the cycle will continue, like a snake eating it's own tail.


37 posted on 06/09/2006 4:11:18 PM PDT by djf (I'm not Islamophobic. But I am bombophobic. Same thing, I guess...)
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