[John D Harris]

I don't know about Krugie's intellectual powers see following example and quote:
"When the bubble burst, the United States' economy went into
recession, just as critics of Greenspan's inaction feared.
Still, if he had been able to lead our economy into a
quick, decisive recovery, his position would have been
clearly vindicated. But though recovery was quick -- the
recession of 2001 officially lasted only eight months -- it
wasn't decisive. On the other hand, if the economy had
fallen into a Japan-type deflationary trap, Greenspan would
have been proved clearly wrong. That didn't happen, either.
Over the last few months, the recovery has finally started
to look like the real thing. We seem to have avoided a
Japan syndrome, at least this time.

On balance, I think the critics are right and Greenspan is
wrong. We avoided becoming Japan after the bubble burst,
but it was a near miss: with interest rates down to 1
percent, the Fed had almost run out of ammunition before
the economy turned around. And even if the economy is
finally on the mend, over the last three years millions of
American workers lost their savings or suffered the
indignity and financial hardship of prolonged unemployment
-- pain that could have been avoided if Greenspan had burst
the bubble before it grew so big."

Please note the liberal use by Krugie of the terms "IF" & "WOULD" and the infamous phrase "atleast this time" as it could happen a differant way next time!
1) Krugie completely ignors the facts that the USA and Japan are completely differant societies with differing attitudes of their respective populations, and those differances make all the differance in the outcome of the economic problem or boom.
2)Krugie doesn't take into account the differant Government structures ie: Japan much more socialist then the USA, Higher taxes, more Gov't intrution into peoples lives.
3)Krugie tries to bolster his thoughts or lack there of on the USA avoiding becoming another Japan, by stating the "Fed had almost run out of ammunition before the economy turned around." That's 'bout the stupidest thing I've ever heard! What does Klugie want? The USA to become another Japan and have near zero growth, BUT HEY the Fed still has ALL it's Ammunition to use if the USA Economy Needs it!!! That is the job of the Fed to do what it can to protect the US economy, If the Fed has to shoot every Frapping bullet it has, then pull out it's trench knife and slit the throat, or rippout the throat of an economic problem with it's teeth the Fed had better do it! Not worry about how much ammo it has the PEOPLE of the USA will make sure it has all it needs.

[ 06-09-2004, 10:21 PM: Message edited by: John D Harris ]