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Gold/Mining/Energy : An obscure ZIM in Africa traded Down Under -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (192)	8/5/2002 3:06:45 AM
From: Maurice Winn	Read Replies (2) \| Respond to of 867

Jay, our great and admirable hero isn't really encouraging the housing bubble, he's convincing people that stuffing their money in the mattress is NOT a good response to the financial glitch he's fixing. He is persuading people to get out there and spend, spend, spend. Whether it's investing in business to business cdma2000 cyberspace or consumer stuff or WAT Predators or houses or cars or CDMA phones from Samsung or China, it's all good. He can't decide what people spend their money on, just as he couldn't control the irrationally exuberant bidding on dot.coms, telecosmics and to a lesser extent Dows. He can minimize them buying gold by persuading central bankers to dump some on the markets to drive people away from the idea of hoarding and hiding. But he can't stop them thinking that low interest rates are a great idea for borrowing and buying a better house or leveraging their house into a new SUV. So, they are buying houses. No big deal. Maybe there'll be a bit of a downturn, as happened in Britain in the late 1980s as predicted by soothsayer Winn to colleagues who were doing crazy stuff in the housing market with 110% mortgages for speculative investment. There was a big downturn in Belgium in the early 1980s. I guess there will be only a 10% drop or maybe 20% tops [your mileage may vary on an individual basis]. Combined with 10% or 20% of the currency, that adds up to quite a wounding, so I wouldn't pretend that taking out a bigger mortgage to upgrade the SUV is anything but a dumb idea. But that's the market for you and Uncle Al is doing the right thing by cutting interest rates to get people spending. I am NOT taking out a mortgage, nor even margin loans, even though the interest rates are low. Not even to buy more sacred CDMA. Heck, I'm not even spending cash on it yet - let somebody else do some spending for a while - I did my bit on Globalstar. Mqurice