Denton;
What were your thoughts in the 80s when, under Ronald Reagan, the bull market
began and money was being made hand-over-fist? Just curious.
george
PS: Saw a great Callaghan cartoon today: Showed a man with a T-shirt
emblazoned with the words "Clinton Believer" leading a man with dark glasses
and a cane by the hand. I'll let you figure out the caption.
Denton Taylor wrote:
> >>I hate to disagree with another Zuikoholic, but Allan Greenspan was
> appointed as the Chairman of the Fed Reserve Board by President
> Reagan, then re-appointed by President Bush. Slick Billy just
> followed along since the economy was doing so great. Just thought
> I'll set the record straight.>>
>
> So therefore he was re-appointed by Clinton. Like a doctor, thy first edict
> is Do No Harm. Greenspan is only half the picture. Would a real liberal
> pick Wall Streeter Robert Rubin as a cabinet member? Rubin was a Clinton
> appointee and was the most instrumental in selling the deficit reduction
> act as a serious measure to Wall Street. Since, as ex-chairman of Goldman
> Sachs, he had the credibility, long-term interest rates dropped, and the
> second leg of the great bull market began. Remember, short-term rates are
> controlled by the Fed, but long-term rates are controlled by the market.
> The 30-year bond yield has plunged some 500nder Clinton for two reasons:
> One, expectations that inflation will be kept in check by Greenspan & Co.,
> and two, that the deficit will be eliminated therefore reducing the
> competition for capital with private industry.
>
> How many people predicted a sub-5% yield and a 9000 Dow when he was
> elected? How many would have guessed the US Dollar would be the world's
> strongest currency?
>
> Two other points: The economy was most emphatically NOT doing great under
> Bush. That's why Clinton won.
>
> Second, if we're going to talk about the Fed, Reagan got credit for
> straightening out Carter's mess, yet Paul Volker was appointed by Carter
> and re-appointed by Reagan. It was Volker's fiscal tightening under Carter
> that resulting in the drastic reduction of inflation--at the price of 21%
> long bonds--that partially caused Carter re-election.
>
> Wall Street is generally considered a bastion of conservatism. But it's not
> really. While many tarnsh the President with epithets of Slick Willie and
> worse, the real fiscal conservatives--the stock and bond traders who bet
> billions on the strength of America daily--are solidly behind him. The fact
> that Clinton may be forced out scares them, which certainly is partially
> (not wholly) responsible for the market's plunge in recent weeks.
>
> Regards,
>
> Denton Taylor
> _______________________________
> Photogallery at www.dentontaylor.com
>
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