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To: craig crawford who wrote (107037)	6/6/2001 8:41:20 PM
From: patron_anejo_por_favor	Respond to of 436258

<<isn't buffet's purchase of silver a dud as well?>> So far, but he can buy and hold that one to good effect (if he lives long enough....) methinks.

To: craig crawford who wrote (107037)	6/6/2001 9:13:19 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 436258

>>isn't buffet's purchase of silver a dud as well? << I think I recall reading he dumped it on the spike over 7 bucks an ounce when news he had bought ran it up. he apparently sold into the rally since he had bought it around 3 1/2. Not sure I recall if he sold it all or just a large amount and then held some. I am surprised no one here has posted the speech from the FOMC member Meyers. He had some great lines that I am sure will be spun bullish by morning <g>.................... "While a recovery along the lines of the consensus forecast is reasonable, I see some downside risks to that outlook. There are no signs yet that the economy is strengthening relative to its first-quarter performance and growth is likely to remain sluggish into the third quarter. In addition, it is unlikely that we will see a repeat of the exceptional performance from 1996 through mid-2000 on the other side of the slowdown. First, the temporary demand and disinflation that accrued during the initial adjustment to an acceleration in productivity--and that contributed to the exceptional performance earlier--may now be behind us. Second, we are unlikely to see a repeat of the unsustainable rise in equity prices or frenzied pace of investment, at least for a time. The events of the past year are likely to linger in the minds of many. "...... ......it appears inevitable that the decline in equity valuations will result in a negative wealth effect; as a result, growth in consumer spending is likely to remain below the pace of increase in income for a while. This will, over time, partially reverse the earlier decline in the saving rate. The other related key will be the degree to which declines in consumer confidence, perhaps under the influence of a softer labor market, undermine consumer spending. ....... the attempt to take advantage of new-economy forces prompted such a frenzy of investment activity that many bad, as well as good, investment decisions were made. ......because the profit opportunities of new technology firms were so difficult to gauge, exuberance took valuations to levels that proved to be unsustainable. ...... ............We could say that the new economy has suffered an old economy disease--if not a full-fledged recession, at least a close relative, a growth recession....... And the under statement of the century award goes for this....."This is a perfect example of an unwinding of a pre-existing imbalance--in this case an unsustainable rise in equity values in the technology sector. " federalreserve.gov Good Luck, Lee