I believe the Greenspan economy, which was based on the then, West German
economic idea of fighting inflation first was what highlighted the 1990's
economic boom. Greenspan was confident, as his German intellectual forebears,
that if one fights inflation and thus, refuses to permit the normal economic
cycle to close, one can have sustained growth.
Caveat: One clearly cannot do this during a fuel price game by OPEC, or a
national emergency, like we are experiencing with this Islamist War. So, in
fact, the hurd instinct which rules the stock market, affected it weakest
link, the dot.coms, last year. My repeated suggestions for placing energy
security first, is also a way of tamping down on OPEC oil shennanigans, and
liberating ourselves from their greed and stupidity.
This may have a salutory psychological effect on its own, in knowing that
America's energy-economic future is on a firmer footing.
<<Is there any "real" evidence that the Fed is completely to blame here?
Could there not also be some blame to be shared by the economists who
were pointing out the tremendous gains in productivity that were
being attributed to the application of information technologies
(finally), or to the accumulation of wealth that migrated into
the hands of VCs who spent it all too often on yet-another
dot-com business plan, or on the newly minted stock owning
public who felt they had to play the market at never-before-seen
P/E ratios or risk losing the lottery?>>
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