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To: yard_man who wrote (77987)	7/27/2003 6:33:51 PM
From: SwampDogg	Respond to of 209892

<<There was a bubble and the errors in capital allocation (read real capital not funny money) must be allowed to correct.>> 100% on the money Any attempts to extend this will produce an even greater disaster. GM's recent financing is a great example as to how this is the case. More bad debt will not solve the problem just as another credit card will not help an insolvent individual over the long run. The weak companies must go under and the strong survive. the !!!

To: yard_man who wrote (77987)	7/27/2003 9:25:28 PM
From: skinowski	Read Replies (1) \| Respond to of 209892

Fed does not have its heart or head in the right place -- the policies are simply WRONG, WRONG, WRONG. It appears that I am more cynical here. I suspect that this is not a case of policies simply being misguided, but more likely they are the result of a conscious decision, a plan. The intent is to get out of trouble by causing inflation. Creditors, both domestic and foreign, would get screwed. Debtors would get bailed out as inflation makes their debt trivial. Bureaucrats, as I pointed out in my post this morning, would remain in control and still be reasonably popular, and they would put the blame on another crop of fall guys, including perhaps some foreign central banks. I think this is the general strategy. It may not succeed, but they'll give it a good try. The process might accelerate sharply if some foreign holders of USD's decide to switch to a different reserve, be it another currency, or gold, or whatever. The moment they'll want to trade in their dollars, sparks will fly. All IMHO, of course.