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To: Amelia Carhartt who wrote (64440)	2/2/2001 8:31:46 PM
From: robnhood	Respond to of 436258

<< Warning Warning Keynes lost his shirt investing in the stock market in the '20s and '30s, and anyone who buys stocks on the basis of a Fed-engineered economic recovery is danger of that too. Consumer confidence is shot and factories are slowing. So here's why the elixir of easier money won't work for long. The bad investments of the boom simply can't survive -- under any monetary climate>>. thestreet.com

To: Amelia Carhartt who wrote (64440)	2/2/2001 9:02:19 PM
From: UnBelievable	Respond to of 436258

Oops, the assumption of Fed rate cut bliss has been obliterated From the link MSB provided: The ONLY reason people have been buying stocks for the last couple weeks is the assumption that the Fed will be cutting rates and make all the bad stuff go away. They assume that commodities are rolling over, the dollar will hold up, and everything will go like it did in 1998 as we massively expand credit again and borrow our way out of another debacle, postponing the consequences till another day on down the line where they will be even worse. But, what happens when oil moves up instead of rolling over, the CRB moves to new highs, the bonds reverse sharply, and the dollar falls? Oops, the assumption of Fed rate cut bliss has been obliterated. prudentbear.com