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To: tejek who wrote (86295)	8/2/2002 6:34:02 PM
From: tejek	Respond to of 275872

Petz, there is a rumor circulating that the Feds in concert with the EU and/or the UK will do an across the board rate cut of 3/4 basis points very soon. In addition to the slow down in growth, the concern is that we are slipping into a deflationary scenario. That was a 3/4 point rate cut; not basis points. ted

To: tejek who wrote (86295)	8/2/2002 6:37:17 PM
From: Dan3	Read Replies (2) \| Respond to of 275872

Re: there is a rumor circulating that the Feds in concert with the EU and/or the UK will do an across the board rate cut of 3/4 basis points I would be flabbergasted by a 3/4 point rate cut, even if it weren't in concert with anybody. That said, I think it would be a good idea. The point at which monetary policy stops working is becoming visible, albeit in the distance. If the FED waits too long, it may be too late for a rate cut to have much of an effect. So far, real estate has held up, which has kept the economy from imploding. If real estate were to start to go, it would be unfortunate. We now know (as opposed to during the 1930's) that we'd have to move to a very stimulative fiscal policy at that point. But (particularly with Republicans in the House and Presidency) a sufficiently strong and properly targeted fiscal stimulus would be tough to get put into place any time soon.