Whether it can be sustained is anyone's guess. What goes up must come down, suggesting to watchful investors that the Fed's finally ready to resuscitate the markets by lowering interest rates. Giving investors hope was upbeat music to the technology sector now inextricably tied to the entire economy. With the Nasdaq now in the tank, Greenspan's admitting that his miserly policy may have gone too far. Supporting new businesses and whipping them with intolerable interest rates.
Technology represents the future.
Entrepreneurs and venture capitalists depend heavily on stock market momentum to launch new industries. When investors head for the hills, market capitalization dries up, and otherwise good businesses go under. Unlike the old days, there's now a healthy interdependence between the old and new economies. Like good parents, the Fed must accept the responsibility of helping fledgling businesses grow from helpless dependence to flourishing independence. Turning the new economy on its head, the Fed's overly punitive policy showed great insensitivity to the needs of companies trying to get on their feet.