Are you looking for a dissertation on Riechebacher? All I can say is that markets and economies rarely coincide in their movement. Riecherbacher has been predicting a sever economic activity contraction since 1997, and frankly, even in the last three years, where the market performed very poorly, the economy has not undergone a major economic contraction. The fact of the matter is that so far, a soft landing (economic, not markets) from the investment excesses in the late 90' has been achieved. Riechebacher would want the economy to readjust itself rapidly so it can resume its organic growth path, but that would mean economic catastrophes worldwide. The fact of the matter is that the expansion of the nineties has created upward of 20 MM new jobs in the US (and more so in some developing countries such as China), and so far, I doubt that more than 2 or 3 MM of these jobs were "given back" in the last three years. Unless we get a cathartic "cleansing", Prof. R is not happy. Well, I am diametrically opposed to any cathartic cleansing, the economic misery created brings about social unrest, destabilization, and a permanent loss of standard of living for large masses that takes years if no decades to recapture. I think that controlled intervention to lean against the prevailing winds of economic cycles is part and parcel of governments and CB's duties. The good prof. would rather have wild gyrations in the economy as we had in the 19th century and early in the 20th century. Look at all the strife and human misery such "purely free" markets have caused.
Zeev
Market Data 
Markets 
AI
