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To: Patrice Gigahurtz who wrote (81474)	8/18/2001 10:42:03 AM
From: Steve Lee	Read Replies (1) \| Respond to of 99985

You are right in that the feds shouldn't have to raise rates to tackle overvalued stocks. Maybe more curbs are needed on the analysts who promoted the media, or maybe lenders should be more careful with who they lend to. Perhaps buying stocks on margin should not be allowed. Or maybe the govt shouldn't be trying to save people from their own stupidity. I don't know the answer. I just don't think this slowdown was caused by raising rates, and I don't see how lowering them is going to fix it.

To: Patrice Gigahurtz who wrote (81474)	8/18/2001 5:28:46 PM
From: bobby beara	Read Replies (3) \| Respond to of 99985

>>>>Should the Feds be messing with our stock markets or are they there to watch over inflation ? We now have a stock market with few buyers, isn't that a liquidity problem ? >>>> i know there are some people that think the fed has total control of things, but in this case i think the fed is somewhat irrelevant. Bull markets go thru phases of childhood, adolescensce, maturity and old age. Around march of 2000, this bull market was an old geezer, who smoked two packs a day and washed a quarter pounder with cheese down with a 1/5 of vodka - daily -gg- People willing to pay any price for a stock with a con, com, net, etc in it's name, regardless of whether they had a realistic business plan and a chance of success, people ignored completely the statistical odds that 80% of new business fail in 5 years. the fed has little to do with the overcapacity built into the tech bubble - which would have popped whether he was raising rates or not, at some point in the future the demand will pick up and the supply of tech stuff will be reduced by companies downsizing and going belly-up, at that point the bear market will be an old geezer, care to aim a guess at it's age right now? -g- lowering rates doesn't do much good, if nobody is growing and wants to upsize and borrow to buy new stuff, right now most are in the process of downsizing. the fed is the little guy in the back room pulling the strings on the all powerful oz, he is not oz, the fed was given way too much credit for the bull run on the way up and of course will receive way too much blame for the bust on the way down.

To: Patrice Gigahurtz who wrote (81474)	8/19/2001 8:52:50 AM
From: Patrice Gigahurtz	Read Replies (2) \| Respond to of 99985

If you read this weekend's edition of Barrons on pg# 34 has a wonderful article about the very topic we were discussion; MrG's recession take #2 and guess what ? Under the same name Prez too ! You got to give him credit, his timing is beautiful. Maybe he loves the phrase, "History repeats itself" ? Now watch for the other foot to drop, a year of companies restructuring ala 1991, ten years to the day; what timing ! PS: If they reduce by 1/2% than the market(s) could get a boost. Otherwise...ouch ! My favorite phrase in hindsight was, "If it isn't broke don't fix it" OR "Some things are better left alone".