>
>
> The monetarists pretty well lost the battle; there aren't many folks
> who don't believe interest rates to be the primary mechanism of
> monetary policy.
Don't you think the existence of a bubble and the "certainty" of 20%+ returns may change things a bit? That under those conditions the ability to borrow money may matter more than borrowing costs? (Not rethorical questions)
>
>
> It may take time for higher rates to burst a bubble, but it will
> happen. I'd guess that the carnage on the NASDAQ is a product of Fed
> tightening - it just took some time.
How? What's the mechanism by which these rate increases have caused the carnage?
By the way, consumer credit exploded January and February - up 16 and 11% annualized, respectively. The January increase is the highest on record.
>
>
> Doug
-- Enrique Diaz-Alvarez Office # (607) 255 5034 Electrical Engineering Home # (607) 272 4808 112 Phillips Hall Fax # (607) 255 4565 Cornell University mailto:enrique at ee.cornell.edu Ithaca, NY 14853 http://peta.ee.cornell.edu/~enrique