> >Fortune - April 3, 2000
> >Alan's Little Secret: The Federal Reserve's Hidden Agenda
> >Part of Greenspan's problem is that investors don't believe he'll
> >ever let this market fall in a heap.
> Hello, "moral hazard" -- haven't seen you on the scene to this extent since
> the U.S. thrift institution crisis of the 1980s. Which reminds me of my
> all-time favorite factoid from _Wall Street_: "If you're going to insure
> deposits, you'd better supervise bankers pretty closely; the price of the
> S&L bailout would have funded the presence of 10 full-time bank examiners in
> every thrift in the country for close to 200 years."
The Bubblemeister's constant protestations of impotence are particularly interesting: can't do anything about margin debt, can't do anything about derivatives, can't do anything to control who the banks lend to...Seems to be a standard reaction in very powerful institutions l;d by very incompetent people: pretend you are powerless, and that way you won't be expected to act.
-- 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