[ECON] Fed Official Sees Calif. Recession Danger

[Maher]

Wednesday May 30 2:54 PM ET
http://dailynews.yahoo.com/h/nm/20010530/bs/economy_fed_mcteer_dc_1.html

Fed Official Sees Calif. Recession Danger

SAN ANTONIO (Reuters) - Federal Reserve Bank of Dallas President Robert McTeer said on Wednesday that it was possible that the Californian economy could slip into recession due to the state's ongoing energy crisis.

Speaking on the economic outlook to the San Antonio Economic and Business Society, McTeer said he thought the price controls put on some energy bills in California had caused the problems in the state and more such controls were not a solution.

``The governor of California has mentioned the possibility of recession because of the high energy prices there. What do I think about that? Well it is possible,'' said McTeer.

McTeer said the deregulation of the California energy market, which had placed price caps on retail charges but not wholesale charges, was the worst type of regulation.

Fair use for educational/research purposes only!

 

[dinky]

How observant of that official.

I wonder it he would also be able to spot a wounded elephant bleeding to death in snow?

 

[Maher]

dinky: Remember, Mc Teer's the one who told everyone several months ago to go out and buy a new Lincon Navagator or other SUV.

Mc Teer is a real hero!

 

[Maher]

Here is one reference to his quote:

Incidentally, Sideshow Bob came up with another risible piece of advice in his speech, commenting that:-

'My term for what happened to the economy as we were gliding in for the proverbial soft landing is that we hit an air pocket. Fortunately, we were flying high enough so that the sudden decline in growth didn't cause us to crash-land. If we all join hands and go buy a new SUV, everything will be all right. Preferably a Navigator.'

Just think. A few short months ago the Fed was trying to close a hypothetical 'supply - potential demand' imbalance and was worrying about increasing the savings rate (in fact, as the Austrians will tell you, the only way viable and sustainable way out of a credit-bust recession). Now, Sideshow Bob wants us to buy an SUV instead, presumably with some of that cheap credit the Fed has just irresponsibly pumped out! Quite what that does for a chip maker or an internet infrastructure company, only McTeer and his danged Frog know, but there you have it, the spectacle of a man, who is part of an institution supposedly more fit to set interest rates than an unencumbered free market, shouting like a fairground barker, 'Roll up, roll up! A free Paradigm with every Vee-Hicle!'

http://www.gold-eagle.com/gold_digest_01/corrigan020901.html

What a kidder - huh!

Here is the text of the original speech:
http://www.dallasfed.org/htm/dallas/speeches/2001/020201.html

[ 05-31-2001: Message edited by: Maher ]

 

[night driver]

I seem to remember this guy as a loose cannon. I SUSPECT that the SUV quote was if not out of context at LEAST completely mis-understood (can you say missing tongue in cheek icon?)

Remember that even a stopped clock is right twice a day...

c