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April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review Sept. 24, 2007 / 12 Tishrei 5768

WH-E-E-E! Happy days are here again

By Paul Greenberg


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http://www.JewishWorldReview.com | Fasten your your seatbelts, it's going to be a bumpy ride. Tuesday's announcement that the Federal Reserve was cutting a couple of key interest rates by a whole half of a point, not just the quarter-point that many economy-watchers expected, set off one heck of a party. What great news — for the short term.


But for some of us scaredy-cats, the news set off memories of the Carter Years and double-digit inflation. It also brought back the Dotcom Bubble in the Clinton Era — before that roller-coaster ride dipped precipitately at the end. How long will it be, some of us wonder, before references to the Greenspan Put is replaced by talk of the Bernanke Bubble?


But what, us Americans worry? Happy Days Are Here Again and pass the champagne. Who thinks about the hangover when glasses are being raised to the Fed? Immediately the stock market took off like a Roman candle. At closing, the Dow had jumped 336 points, or maybe over the Empire State Building. Whoopee!


The Dow gained 2.5 percent Tuesday to close at 13,739 — the biggest one-day jump in five years. Predictably enough, gold was up, way up, and so was the yield on long-term (30-year) bonds. The poor and getting ever poorer dollar was down — not good signs for those of us still concerned about inflation, not just de-. Shades of the disastrous Carter Years, crude-oil futures closed at a new high. Uh oh.


Sure, a great big fat interest-rate cut is a good thing, but as in too-much-of-a. How long before the Fed decides that what the economy needs is a whole point cut? Or several of them. Maybe it does, but why get there all at once?


Only a month ago, the Fed was making sounds as if inflation were the big danger to the economy. Now it's the decidedly lesser evil compared to panic on the world's stock exchanges. What a difference a tremor in the subprime housing market can make. The 180-degree change of course was dramatic. To quote the Wall Street Journal's hard-breathing, front-page account of the mood swing Tuesday:


"In the moments before the Fed's announcement, at 2:15 EDT, a calm came over the New York Stock Exchange as traders waited, gazing at information boards. When the news hit, noise filled the room as surprised traders scurried across the floor seeking to close bearish positions and bet on stock gains."


The spigot had been opened on the money supply and the bulls were lapping it up. Thank you, Federal Reserve. Maybe.


When those who control the reins of power hand out goodies, a savvy statesman named Machiavelli once advised, they would be well advised to do so in small increments — so the good news can keep coming. That way, people will have reason to be grateful again and again, not just once.


Confidence in the economy should be built the same way: slowly and steadily. So it'll last.


Maybe somebody should send "Helicopter Ben" a copy of Machiavelli's "The Prince." The still new chairman of the Fed, Ben Bernanke, acquired his nickname when he cited an observation from his friend and mentor, the late great Milton Friedman. It was the now-sainted Dr. Friedman who noted that a government able to print money could attack deflation simply by dropping the stuff by helicopter. But, goodness, he didn't it should be dropped all at once.


A quarter-point rate cut would have been a nice appetizer for an economy starved for cash. But a half-point drop makes it sound as if the Fed is getting ready to serve every dish on the menu in one course. Indigestion may result.


The same herd now rushing to buy will soon enough be running to sell when this stimulus abates and the inevitable downturn recurs, maybe bigger and worse. It's all enough to make one suspect that economics is but a branch of mass psychology. And the patient — in this case the fickle, buying-and-selling public — needs to be treated with care and consistency, not rushed from treatment to counter-treatment.

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