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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (39855)	8/31/1999 7:44:00 PM
From: Bobby Yellin	Read Replies (1) \| Respond to of 116979

I don't know enough doug..I do know that is a great site because it presents a wealth of information.. I don't know if you read Burt dolhmen's excerpt..especially about real estate.. I don't agree with all of Lonski's conclusion.. real estate is cyclical..many hard working americans don't have the funds to invest in the market..I think a lot of trustfund welfare recipients have profited immensely though.. also the thought of all those baby boomers putting money into stocks for their retirement and when the time comes, who will get out first..right now they might be feeling wealthier but since they can't take out those funds without major penalty..once the bubble bursts what will Lonski say about their wealth..real estate prices in Manhattan are obscene..reading about those real estate prices in silicon valley and san francisco shout Japanese real estate before the bubble.. biz.yahoo.com did you read that post..was the fellow being facetious about people buying cars with nothing down etc? I am much better at asking questions :-) ps I still don't buy the argument that producers are to blame for the demise of gold..the threats of unloading all that gold by the CBers was like playing chicken..I don't think all of the mining companies were up for that kind of game..a lot that were went bankrupt

To: d:oug who wrote (39855)	8/31/1999 8:51:00 PM
From: Ahda	Read Replies (1) \| Respond to of 116979

You had a very low commodity base price during this period. Now the trend is inflation asset values real estate for example strengthening in oil prices etc Asia mending also By increasing liquidity and keeping interest rates low the Fed gave the economy a jump start but, the by product of that is the inflationary trend we are seeing today. The ease of money partially gave birth to this robust economy add to this the low cost of import and tie into this the explosion in net tech plus cost savings created in tech and you have the makings of the market monster. In my opinion all the FED can try to do now is to stop what happened in Japan from happening here. Mr Greenspan is going to have to be a magician on rates in my humble opinion.

To: d:oug who wrote (39855)	9/1/1999 10:22:00 PM
From: Ron Struthers	Respond to of 116979

Doug, it seems I had little company with my opinion in July that the FED and Greenspan were targeting asset prices (stock market) with their interest rate policy and certainly the markets, thus far have ignored this. However, Greenspan's latest speech was dedicated totally to assets prices and the economic effect and FED policy. I believe it is becoming clearer that the FED intends to end the stock market bubble, hopefully gracefully, but historically bubbles never end this way and Greenspan is quite aware of this difficult situation. Following is a few highlights from his speech that clearly indicate the FED concerns. "As the value of assets and liabilities have risen relative to income, we have been confronted with the potential for our economies to exhibit larger and perhaps more abrupt responses to changes in factors affecting the balance sheets of households and businesses. As a result, our analytic tools are going to have to increasingly focus on changes in asset values and resulting balance sheet variations if we are to understand these important economic forces. Central bankers, in particular, are going to have to be able to ascertain how changes in the balance sheets of economic actors influence real economic activity and, hence, affect appropriate macroeconomic policies." Mr. Greenspan's conclusion here is pretty straight forward in how important asset prices are to economic forces and that these have to be confronted with monetary policy. "In conclusion, the issues that I have touched on this morning are of increasing importance for monetary policy. We no longer have the luxury to look primarily to the flow of goods and services, as conventionally estimated, when evaluating the macroeconomic environment in which monetary policy must function. There are important--but extremely difficult--questions surrounding the behavior of asset prices and the implications of this behavior for the decisions of households and businesses. Accordingly, we have little choice but to confront the challenges posed by these questions if we are to understand better the effect of changes in balance sheets on the economy and, hence, indirectly, on monetary policy." Perhaps good for gold as it is seen as an alternative investement to tumbling socks Ron