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To: cheryl williamson who wrote (38470)	12/1/2000 3:59:13 PM
From: High-Tech East	Read Replies (2) \| Respond to of 64865

I agree completely.... It never should have happened (you are referring, I think, to the last FED increase of 50 basis points last spring) Hello Cheryl. It seems that your thesis (as well as that of JDN) is that one of the primary purposes of the FED is to promote financial gains for investors while, at the same time, protecting them from any significant losses. It is easy to think that way based on FED behaviors in 1998 (lowering interest rates due to the Russian & Asian financial crisis) and in December of 1999 (significantly increasing the money supply because of Y2K fears). December, 2000 is an entirely different situation, and while I expect the FED will move to a neutral bias on December 19 or early in 2001, I do not anticipate that they will cut rates quickly unless GDP growth continues it's recent rapid decline past next January. A new and complicating factor the FED has to seriously consider is that the declining value of the dollar is starting to look like it might be a problem. If the dollar starts to significantly weaken, the FED is going to have to move very cautiously, as dropping rates will weaken the dollar further and lead to greater inflationary pressures here in the U.S. Unfortunately, there are no simple answers to the complex macroeconomic issues we face now and next year. Nor do I believe that when the presidential election is finalized, that we will experience anything more than a quick and robust rally. The problems on Wall Street have been aggravated by a lack of political closure, but the real problems are purely economic. Disclaimer: The above is my personal opinion. I recommend that you do not base your investment decisions solely on any one person's views or analysis (including mine). Do your own research and take personal responsibility for your investment decisions. Ken Wilson