Quote:
Originally posted by Buff@Jun 17 2004, 08:05 AM
Ridiculously easy credit is the fastest way to boom the markets. It's also the worst since it results in a bust. The best policy for LONG TERM stock market is a stable money stock and pro-growth fiscal policy (low tax rates, deregulation, etc.). We have examples of both types of booms, false an real in our history. I submit that the false booms are more intense short term accelerations in stock prices and they accompany Fed-induced artifically low interest rates (below the natural rate). Real booms occur at a slower rate but last much longer.
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Ok, I agree with that. We saw recessions in 2001 and 1990 both at peaks in the discount rate. Would you say Greenspan is to blame for 2001 recession?