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To: Hawkmoon who wrote (52692)5/14/2000 12:05:00 AM
From: LLCF  Read Replies (1) | Respond to of 116762
 
<The Fed's job is not to judge when asset prices are too high, regardless of whether or not they are stocks or real estate. >

Better tell AG that.... what is the fed's 'mandate' anyway?

<The real problem is that the US economy is strong and producing discretionary income that is going into 401K and IRA's, as well as street accounts and there ARE FEW PLACES SAFE ENOUGH TO INVEST THAT MONEY.>

Why is that a problem??

<The US is the only safe harbor and thus the rest of the world lanquishes because their markets are not as efficient or corruption is rampant. >

"only safe harbour" is rediculous, the rest of the paragraph is just untrue.

<Money will migrate where there is the best chance of financial gain. >

Put 'perceive' in there somewhere and I'd agree. Markets are notoriously 'wrong' during for large periods of time.

<The problem is the rest of the world, not the US. They simply cannot bring themselves to create the conditions to where US capital can be deployed to their markets. >

That's way oversimlified. If U.S. investors [we know companies do it in a big way, so it can't just be political risk] won't invest overseas because of perceived problems of risk, or I'd argue perceived lack of RETURN at the moment that doesn't mean it's necessarily a PROBLEM for that other country that must be solved [althoug god knows there are plenty in many countries], it may just mean that U.S. investors are fat and happy like a DOG with a juicy bone that keeps nawing and totally ignors anything else... till it's all dried out, or he gets a splinter, or in this case perhaps worse.

<Until the world gets its financial and economic house in order, the situation will remain the way it currently is. >

There are too many variables to say that IMO. Also, most of the world has made increadible progress since WW2 in become "more like us" for lack of better term... so all in all I believe you're overly simplistic on your assumptions about money flow. I also disagree with the assumption that we have our 'economic house in order'.

DAK