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To: Zeev Hed who wrote (201863)	11/3/2002 2:35:40 PM
From: Lucretius	Read Replies (1) \| Respond to of 436258

LMAO... raise rates to inspire confidence??? that is absolute stupidest thing I have ever heard. LOL... my sides hurt... LOL.... you can't be serious??? so, you think Volcker should have actually cut rates in 1980 in order to convince the mkt through reverse psychology that there wasn't any inflation? LMAO....

To: Zeev Hed who wrote (201863)	11/3/2002 3:09:49 PM
From: At_The_Ask	Read Replies (1) \| Respond to of 436258

Zeev it sounds to me like you are arguing for inflation and lower gold prices at the same time. Am I missing something?

To: Zeev Hed who wrote (201863)	11/3/2002 3:45:50 PM
From: mishedlo	Read Replies (1) \| Respond to of 436258

This is interesting because a few weeks ago I suggested that Japan raise rates. Not sure if you see that Japan has the same problems or not. My grounds were not as well thought it. My simple theory was that lowering rates keeps making things worse and that the US appeared headed to do a Japanese implosion if we kept this nonsense up and kept up encouraging consumers to take on more debt while unemployment rises. Raising rates will toast housing. Do you agree? OTOH housing looks ready to toast itself regardless of what happens. It seems to have peaked. Perhaps your "gambit" is suggesting that the consumer has held up his end of the "bargain" far too long and possibly at too much risk given the balance of trade and debt. Raising interest rates would stop this nonsense, but would it get companies to start buying (when they are hugely in debt as well). To me it appears it's dammed if you do and damned if you don't. How often are 75% chances (based on fed fund futures) wrong when they think a rate cut is coming. Lowering now to raise them in 6 months or whatever does not seem to make much sense either. Now if you can just tell me whether or not IBM will close any of those lower gaps before it closes that huge gap above at 90 I would appreciate it. M