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Technology Stocks : Cisco Systems, Inc. - Off-topic postings

CSCO 71.08

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Nov 7 9:30 AM EST

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To: JDN who wrote (32)	11/29/2007 7:50:46 PM
From: RetiredNow	Read Replies (2) of 230

Hi JDN, it's not just to prove a point. If the FED lowers rates, it decreases the value of the dollar. So if you have $100 in the bank that could buy $100 worth of goods, then maybe that $100 will only be able to buy $95 worth of goods after the FED lowers rates. Inflation happens when the FED lowers rates; we are all poorer. So yes, lowering rates increases liquidity, which ensures more people can borrow more money, which means they can take that money and spend it or invest it, which increases GDP, which tends to increase the stock market. However, that is borrowing growth from the future to get growth today. Eventually, the piper will have to be paid. I'd rather we don't mortgage our future to do it. Let's live a day at a day according to what we can afford. If that means the banks need to write down the value of their portfolios to account for their losses and their stock prices go down, then so be it. Next time, they will have learned their lesson. But all of us shouldn't have to suffer for the mistakes the banks made.

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