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Greenspan Applied Fed's Losing Formula

January 21, 2002

We are in a recession. The lion's share of responsibility goes to Federal Reserve Chairman Alan Greenspan. He created a formula to hold the economy on an even keel: raise interest rates when the economy is getting too hot and lower interest rates when the economy is getting too cold.

Last year he set new records by lowering the prime rate 11 times, trying desperately to avoid a recession. Of course, he failed because his premise is wrong, and he's in the act of proving so at the expense of millions who put their trust in him.

Lowering the prime rate takes many billions of dollars out of the hands of savers. A fatal maneuver. We need those dollars in circulation. More than that, the lowering of interest rates brings on a panic of its own by hint of recession.

Thanks, Mr. Greenspan, for busting the economy.

Harry Stuehmer

Sun City

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