| they were expecting 50 points, they only got 25, that's why it tanked. The new guy in charge shouldn't yield to the ridiculous pressure of the bank crowd
I also note that Greenspan is declaring that monetary policies (the cornerstone of modern capitalism) doesn't work when there is too much savings feeding a bubble. What he forgot to mention is that too "much savings" come from the rich who have too much money to fool around and not enough good ideas to invest into, hence making those foolish bubble investments. Maybe increasing taxes and more responsible fiscal policies could have solved all that ?
We are at a crossroad where money supply theories have reached their limits, and it's time to come back to a keynesian model (money demand)
Last edited by Butterfly : 12-12-2007 at 10:47 AM.
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