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To: Haim R. Branisteanu who wrote (166647)	5/18/2002 8:57:43 PM
From: maceng2	Read Replies (1) \| Respond to of 436258

Haim re that IMHO a successful war on IRAQ and the destruction of the Saudi Regime would add a tremendous positive stimulus to the US and world economies ............. my theory sounds strange as wars are destructive but in this specific case it will be highly constructive as the oil rich arab state are squandering billions and billions of oil revenues for terrorist organization I understand what you are saying. I have a certain respect for the USA. If some nation says the USA is "the great satan" then the USA has my permission to nuke the bastards... just for saying that. At the same time we have to see what is going on here. No one is going to vote for a system where the majority of poor folks get poorer. There is some aspects about global trade where everyone seems to have to lose so some greedy guys make a profit. Ain't gonna work imho. Read about the Russian and French revolutions, which were not pretty, in fact downright awful. Make the average joe a winner, then you are a winner. just my view.

To: Haim R. Branisteanu who wrote (166647)	5/18/2002 9:34:47 PM
From: yard_man	Read Replies (1) \| Respond to of 436258

>>and those paying their mortgages and working got a pay hike aside from tax rebates by paying less mortgage and less interest on their credit cards, which gives them more free money.<< with all due respect: Nutz, Haim. Yes, many refinanced, but many either moved up to bigger and better digs or took equity out or refinanced only to save their already wanton spending habits (as in beyond their means). Now as to credit card interest -- those that actually carry a balance -- the rates are exorbitant enough that a percentage point or two is irrelevant. The fact is: real interest rates for new borrowing have been negative for some time -- it is the length of time that this state of affairs has persisted which has engendered the indebtedness out there. A few points off of the debt service of most households is not going to encourage more spending -- more like just delay the day of reckoning. You really should get a hold of Dr. Richebacher's letter for this month. He does a very good job of making the case that the recent huge expansion in debts carried by individuals and corporations has had nil effect on economic activity -- he posits that the decrease in rates and increased availability of credit was necessary just to maintain debt service, i.e. additional borrowing went to debt service. If that's true -- the US is in considerably worse position than the EZ. He has been saying for months that American consumers are much greater lovers of credit and that individuals in the EZ do save and don't go ape with credit. The US consmer will retrench and that will be the end. Only question is when.