Doug: > My late friend John Liscio heard from a JP Morgan economist (who almost certainly got it from high-level Fed sources, if not Greenspan himself) in 1996 that AG was very worried about deflation, and so resisted pressure from the bond vigilantes and some of his FOMC colleagues to tighten. He was right - but his indulgence, followed by his promotion of the new economy nonsense, really pumped up the bubble.<
I forgot to mention that deflationary forces were real, what with the East Asian crisis (1997) plus Russia & Long-Term Capital Management (1998). These produced fears, which likely persist in the hallowed halls of the Fed.
Jim
- [PEN-L:28452] yesterday & today, Devine, James Wed 24 Jul 2002, 21:05 GMT
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- [PEN-L:28448] storm watch, Devine, James Wed 24 Jul 2002, 18:23 GMT
- [PEN-L:28447] RE: Re: RE: The D word surfaces, Devine, James Wed 24 Jul 2002, 17:50 GMT
- [PEN-L:28443] RE: Re: RE: The D word surfaces, Devine, James Wed 24 Jul 2002, 17:25 GMT
- [PEN-L:28462] Re: RE: Re: RE: The D word surfaces, pms Thu 25 Jul 2002, 05:02 GMT
- [PEN-L:28441] RE: Re: RE: Re: Re: the inadequacies of democracy, Devine, James Wed 24 Jul 2002, 17:14 GMT
- [PEN-L:28440] Re: RE: Re: Re: the inadequacies of democracy, Justin Schwartz Wed 24 Jul 2002, 17:07 GMT
- [PEN-L:28437] RE: Re: Re: the inadequacies of democracy, Devine, James Wed 24 Jul 2002, 16:53 GMT