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To: Dan3 who wrote (85650)	7/24/2002 12:22:43 AM
From: kapkan4u	Read Replies (2) \| Respond to of 275872

<But if a rate cut (or two) can bring another wave of refinancings, it will add some liquidity to the economy. > This is like Elmer rolling out his QQQ short puts -- digging a bigger and bigger hole. The current debt levels are unprecedented already. Refinancing and spending the house equity is not a sustainable source of capital. The US stocks went from $17 trillion to $10 in two years. No rate cuts can compensate for that. There were only two bubbles before (three if you count the tulips): in 1929 in US and 1989 in Japan. We know what happened then. The history was quick to blame politicians, but I think that post-bubble depressions are inevitable because of huge destruction of wealth. I hope I am wrong on that. Kap

To: Dan3 who wrote (85650)	7/24/2002 12:49:21 AM
From: tejek	Respond to of 275872

Dan, I heard about the Kudlow remarks. Its possible he was suggesting that the Feds might cut rates. However, I think if they are meeting, its to try and talk some confidence into the markets. The President has failed to inspire and the Sec. of the Treasury is in Poland. There really is no one else. As for a rate cut, I think that would only scare the markets right now. Something has to be done soon........the selling is overdone and has become compulsive.......and could lead to much more serious consequences. ted