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To: James Strauss who wrote (6463)	8/7/2000 2:41:35 PM
From: Chisy	Read Replies (1) \| Respond to of 13094

Jim: I found this interesting post re. interest rates and the Fed. What do you think about this premise? Chisy agoracom.com From: wirelesraven Date: Monday, August 07, 2000 -------------------------------------------------------------------------------- Interest rates: interesting insight on the process. ''The Exchange has obtained comprehensive controls over the nation's credit resources...in order to finance gambling on margin and on behalf of member firms' segregated accounts and trading accounts. Specialists employing their special credit exemptions are intent on accumulating enormous quantities of stock for themselves and their institutional accounts. To do this this they have pursued a high-interest-rate policy. When New York banks raise interest rates, a condition is created that makes it too costly for members of the public to borrow in order to finance stock purchases. This then leaves the stock that is being sold at the bottom of the market for the benefit of the Stock Exchanges-and the banks. Another important aspect of the rise in interest rates as stocks move towards their lows is that it preserves a buying reserve. When stocks move toward their highs, interest rates will be lowered in order to attract this potential reserve of buyers into the market. Stock Exchange members and the bankers themselves will no longer need so much credit since they once again will be liquidating their portfolios and their credit carrying charges.'' - RN ''...The Fed's wisdom in raising interest rates is now revealed as no more than a myth.'' -RN ''...for the Fed to raise interest rates in order to cure inflation is like pouring gasoline on a fire to put it out.'' - Congressman Wright Patman