Why the PPT is not charging full speed ahead...

greenspun.com : LUSENET : Unk's Wild Wild West : One Thread

One potential hypothesis for the recent US stock market stumbles (especially in the NASDAQ, to a lesser extent in the S&P and DOW); it is after the election and before the probable installation of a Republican President (Bush) or a Republican serving as President. Remember that the chairman of the US Federal Reserve, Alan Greenspan, is a Republican. Could you suggest a better time for some of the "irrational exuberance" to be let out of the US markets than before 20 January 2001, so that then the incoming US President could take even more credit for a (presumed) economic recovery?

I therefore think it rather unlikely that the US Federal Reserve will lower rates at its next meeting, although they may shift to a neutral bias (to throw a sop to the US markets). If the shoe was on the other foot (an incoming Democratic team replacing a Republican administration), I am certain that the much-fabled US Plunge Protection Team would be doing all that they could to maintain the US markets on a steady course through 20 January 2001.

-- rooter (skyroot@msn.com), November 29, 2000


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