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To: Box-By-The-Riviera™ who wrote (205969)	11/20/2002 10:10:57 PM
From: Haim R. Branisteanu	Respond to of 436258

Lewis may be theoretical right and I agree with almost every word, but then again how can you go against a nuty AG who stated that besides interest rates there are many other ways the FED can prop the economy. I remember well March /April /May 2000 it was a 3 month afair and we are only 30 days in this halucination. HUH and I was expecting 15% in a year or so not 2 weeks <GG> Message 18102951 Message 18102964 HE is very right about inflation - most so asset inflation in Y2K it was the stock market and now is RE growing at 4 to 5 times inflation ...... and asset that only provides shelter not "improves productivity" or is disposable within 3 years <GG> I think that the UK will give clues when RE will start to falter and lower interest rates will move the crowd to sell US and UK RE and start buying European RE ......... bingo USD will accelerate down

To: Box-By-The-Riviera™ who wrote (205969)	11/20/2002 10:34:23 PM
From: Roads End	Read Replies (1) \| Respond to of 436258

Thanks for posting Lewis tonight. My eye is on the buck.

To: Box-By-The-Riviera™ who wrote (205969)	11/21/2002 2:02:58 AM
From: Perspective	Read Replies (2) \| Respond to of 436258

I think the concepts of deflation and inflation are used too broadly. It is entirely conceivable to have both present at the same time. In fact, with a Fed doing everything in its power to stimulate money supply growth (ie enticing debtors to go deeper into debt), it should be expected that we would experience both. Easy money is like a stock split - Greenie is giving you a 2:1 split on your dollars only he doesn't want anybody to notice. Since the money doesn't flow everywhere equally, it results in severe price instability, inflation in places, deflation in others. From a corporate point of view, it is the worst of all possible worlds. They are pinned between raw materials costs that track money supply growth, labor costs that are "sticky", but weak pricing for finished products. And with the Fed trying to jam more investment capital out of safe places and into play, even more malinvestment is encouraged, further weakening the value of existing capital and pricing power. Dollar devaluation, raw materials inflation, finished goods deflation, asset deflation, all at the same time, all squeezing the corporation. BC