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To: flyboy who wrote (53994)	1/4/2001 10:59:35 AM
From: re3	Respond to of 436258

<<<Gold is a somewhat dated commodity and there is not the need to buy because the FED action is in fact good for the US economy and Dollar. okay you keep thinking this and i'll keep buying franco nevada... ps grub 54k !

To: flyboy who wrote (53994)	1/4/2001 11:38:58 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

we disagree on so many points that i'm not sure where to begin...a) the dollar has been in virtual free-fall since reaching its most recent high. it has broken a major trend line in the process. b) i doubt that something that has served as money for a few thousand years can ever be 'dated'. gold remains the only form of money that is no-one else's obligation, and can't be printed willy nilly. out of favor, yes. dated, never. in Euro terms it recently reached 3 1/2 year highs, and in Ozzie bucks even 5 year highs. serving its function there quite well. c) the jury on the effect of rate cuts is still out. the private sector debt mountain which is busy imploding at the margin already is the largest ever created anywhere, in every sense (in both absolute terms and relative to GDP, disposable income, equity)...the Fed may well find out that a liquidity trap has been built, in which case they can drop rates to zero and it won't help the economy. don't forget, the biggest financial asset mania of all time has concluded last year, and credit/asset bubbles of this size usually resolve in liquidity traps and solvency crises as they unwind. while everybody's blind faith in the gaggle of bureaucrats at the Fed is quite touching, it is also completely misguided imo. one thing we do agree on is that firms like GS will have a tough time with earnings comparisons. the problem is, everybody knows that, and the stocks in the sector have already declined quite a bit as a result. but i'm sure they will be worth revisiting once the current bounce has run its course.