Why Wait?

Why wait to get RID of Greenspan and to get RID of the FED? If the first sentence of Chapter 1 of Jude Wanniski's The Way the World Works has any truth to it:

"The political model holds that the electorate is wiser than any of its component parts."

Then there is no way that Greenspan is wiser than the market. Greenspan and a FED full of brains is not smarter than the market. So why subject ourselves to the tyranny of the few who have been so harmful to the economy?

In a world of instant communications, where all local markets (Asia, Europe, USA, Australia, even Venezuela) are now integrated into a single World Wide Market (WWM) the money traders are quite capable of keeping the currencies in balance by their constant buying, selling and hedging. A world of instant communications does not need a wizard or a referee to tell it how much money it needs and what price the world should charge for its money (the interest rate). These things, like water, will seek their level of minimum kinetic and maximum potential energy if left alone by the central bankers.

What made George Soros famous? Why is he known as "The Man Who Broke The Bank of England?" Because he and the rest of the money changers went up against the British central bankers and proved them wrong. In that episode Soros and his buddies got rich at the expense of the Bank of England. In this episode, Greenspan has made a whole lot of people poorer.

I urge everyone of you to write to your representative in Congress and to anyone else in a position of influence, maybe Bush himself, and ask that the FED be shut down and the Greenspan be put out to pasture and NOT replaced by anyone.

Denny
"Demand creates queues. Supply gets rid of them."

I agree with most of this, but it was still a bubble. The FOMC's actions exacerbated the situation, but you find it extremely difficult to find a more textbook definition of a bubble in market histroy.

cleigh
Royersford, PA
"I take full responsibility for my buys, sells, gains, and losses."

If it was a bubble, please call it by its proper name:

"The FED induced Y2K bubble of 2000."

and Alan Greenspan was the FATHER of this ill conceived child!

Denny
"Demand creates queues. Supply gets rid of them."

Denny,

Why do I keep forgetting about this. You are absolutely right. The FOMC pumped heavy liquidity into the system to remedy a problem that never materialized.

The question that I was left asking myself was....Was it better to prepare for a situation that never mounted or be unprepared for a potential disaster.

cleigh
Royersford, PA
"I take full responsibility for my buys, sells, gains, and losses."

Was it better to prepare for a situation that never mounted or be unprepared for a potential disaster.

The Reagan era mantra was: If it ain't broke, don't fix it!

I think the bubble and it's ugly aftermath give you a very clear answer: If it ain't broke, don't fix it! and GET RID of AG and the FED!

Denny
"Demand creates queues. Supply gets rid of them."