RE: energy crisis

["Mark Jones" <jones118@xxxxxxxxxxx>]

Jim Devine wrote:
> >
> >>why is there this slowdown that the Fed
> >>can't help by reducing rates?
> >
> >Because it's more of a 19th century slowdown than a post-WW II
> one, with a
> >financial hangover from the burst Nasdaq/tech bubble, and a real sector
> >one from overinvestment in gadgets. It's probably going to take
> some time
> >to work through it.
>
> it's possible that if Greenspan keeps lowering rates, the U.S.
> economy will
> suddenly spurt forward. In that case, he'll have to raise them again to
> avoid inflation, which has always been his main concern.  Isn't this one
> reason why Uncle Miltie argued against fine-tuning?

If it did spurt forward, how would that change the fundamental imbalances in
the US economy, except adversely? In other words, it is simply nemesis
deferred, and for a price.

Mark Jones