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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Earlie who wrote (215044)	1/16/2003 8:14:26 PM
From: Alias Shrugged	Read Replies (1) \| Respond to of 436258

Earlie-- Quite fascinating (and saddening) to watch the Virtuous Cycle degenerate into the Viscious Swoon. During the expansion, the most natural, the most rewarding path for an enterprise was expansion---more sales, more employees, more advertising, more capacity, more debt, more acquisitions, more taxes paid to government, higher wages, higher values for financial assets, securitization of every farking thing possible, more debt, more equipment, more orders, more debt, higher targets. It was easy, rewarded, facilitated, praised. Now the great scheme of a dream slows down. And in this contraction, the most natural, the most rewarding path for an enterprise is contraction - less people, less costs, lower asset values, less profits, less taxes paid, lower headcount, lower bonuses, lower capital gains, lower option gains, fewer acquisitions. Instead of "Going for the Glory", we now have "Live to Fight Another Day". What percentage of news items describe contraction as opposed to expansion? The Fed, the Pundits, and Wall Street all assure us the economy is recovering. Well, sure it is a nascent recovery, just starting to begin to show signs of an upturn, but it has FOR SURE started. Yes Sir, we are on track. Yet every frikken piece of economic news I see spells "Hunkerin Down". The game is recognized to be much tougher. The debt has remained. Before it sucks us straight down a black hole, the FED will print and buy assets at warp speed. They will burn the village in order to save it. I have shares of PM stocks. But as one who plays the dark side, I am concerned that the Fed's printathon could hold up stock prices or, worse, actually inflate them. Can this upcoming massive printing by the Fed perversely manifest itself in the Financial Matrix as higher stock prices? (Specifically in the price of IBM, FNM, MBI, HDI, CFC, RDN? -gggggg-) Mike