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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (23130)	9/2/2002 5:42:20 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

<But you're the guy saying if rates got below 1% you'd borrow zillions, hence being one of them... letting something like price of money influence your actions.> DAK, the Mindless Zombies blame somebody else for their decisions. Of course the price of things affects the demand for it. You haven't discovered anything new there. Usually though, if people misvalue something, they would take responsibility for their valuation [unless there was fraud such as the Bre-X scam]. Mindless Zombies however, claim that the person pricing the thing they want to buy is at fault. Even if the seller doesn't price it but leaves it to a crowded auction, the Mindless Zombies who buy will blame the other bidders for driving the price too high, making them pay too much. For example, in the European 3G spectrum auctions, where, as a backup, they also blame the auctioneer and seller. You see, nobody is responsible for things they do - that's the character of Mindless Zombies. Not that they respond to price, which of course is what any sensible sentient person does. You have misunderstood my intentions on borrowing. While it's true that low interest rates would attract my attention with a view to borrowing, before I borrow, I will want to value the thing I intend to buy and unless I see a bargain, a 1% interest rate won't be attractive. You have to understand that interest rates will rise again and quite quickly. So, borrowing at 1% now isn't all that great if one buys an overvalued asset then has to contend with increasing interest rates and the asset dropping in value. So, while interest rates have been dropping, I've been increasing my cash position and lending. When interest rates start going up again, that's probably when I'll start borrowing again [because the assets available will be going down or won't have gone up much]. Much of the Mindless Zombie moaning is that Uncle Al was easy-Al but actually, interest rates were plenty high enough and to squeeze even more would have almost certainly caused a deflationary implosion and economic collapse. Better to let the Irrationally Exuberant Mindless Zombies lose their shirts, then tidy up the post-Y2K party, which has been quite painless really [from an overall point of economic view rather than with individual portfolios of mayhem, where damage is extreme and suffering acute]. I am ready to borrow zillions, as borrower of last resort and share-buyer of last resort. I just want the prices to be aligned and some smoke to clear so I can see what the heck is going on. Mqurice