Dan M <[EMAIL PROTECTED]>
> That's
> what the interest rate measures...the willingness of folks to buy GE notes.
Gee, really? It couldn't possibly be just a little more complicated than that?
> A rational
> market wouldn't change GE's interest rate that quickly
Again, really? Either you are stating a tautology, or you have no way of
knowing whether the change was reasonable.
> BTW, in saying this, I'm arguing that there is a problem that is not
> inherently related to the government, but originated with market players who
> build bubbles and panic,
How profound. Maybe you should write it up as a paper and submit it to
an economics journal. Surely you are the first to realize this!
> In a sense, the problem is not that there is a housing bubble in some areas
> of the country. It's the timing of the market response, and the irrational
> extension of it.
Sure, the government was largely responsible for creating a huge home price
bubble and encouraging a bunch of bad loans to con-artists and people who
had no business getting the loans, but that is not the problem. The problem
is that the market finally began adjusting the price towards fundamental
values. Right. Good point.
> This is a personal example of the irrationality of the market that I'm
> talking about.
Right, blame "the market" for adjusting values to where they should be, not
the government for being largely responsible for putting values out of whack.
That's the ticket.
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