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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (5483)	12/15/2001 12:49:25 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 36161

michael, This economic system is complex, but IMO the root of the system is human reactions to their environment. The Fed data shows that our bankers are not lending at the rates they did during the late 90's, probably because of regulation. Our commodity producers are starting to take production off line. On the other hand housing has not come to a halt and IMO this is because of the change in lowering and creating new schemes where people can qualify for loans. Some of us look at the data and try to understand why, but we really don't know the answer until the system gets back to stability. The example that comes to mind is this week the silver leasing price when off the charts - up; as well as the price of silver inched forward. This weekend the trading pit folks are rationalizing that Enron was covering their silver short positions. But who really knows what is happening to silver until it stabilizes at some level. I don't know what is going to happen. The data shows us that there is a large amount of debt in the system and this debt has to be serviced or written off. For the debt to be serviced corporations need to have stable profits, people need to have jobs and governments need to increase their revenues. If this happens then things should stabilize. If this does not happen I need some one to explain to me how we could have inflation. The same question applies to the over capacity that has been build world wide. Joan