>>>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
>_______________________________
Very cool analysis, Denton.
Winsor
Winsor Crosby
Long Beach, California
mailto:wincros@xxxxxxxxxxx
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