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To: Claude Cormier who wrote (83353)	8/17/2008 10:03:43 PM
From: SouthFloridaGuy	Read Replies (2) \| Respond to of 116555

Claude, it's really quite simple. People will lend when they feel the ROI is acceptable. If assets are overvalued, the ROI is unacceptable. The best way to get the economy going is to let assets revalue and given the depth of our capital markets, investors will surely come in - it's already happening for instance in parts of California. The Fed need not do anything to 'prop' up assets and I don't think they plan to either. The Fed's job is to ensure the solvency of the banking system and Bernanke is doing a decent job there though I think he screwed up with the extreme rate cutting (he should have focused on the things he has been doing since Bear Stearns). All that did was put fire onto the commodities bubble. If he so chooses, he can put more fire onto it again. Only time will tell what the playbook is. But to give more power to countries like Russia and Venezeuala through Fed "printing" is not acceptable to any administration, IMO. America is already differentiating itself from Japan in many ways, but in many ways it is not (the Fannie debacle for instance). So we'll see what the future holds, I guess.

To: Claude Cormier who wrote (83353)	8/18/2008 2:14:41 AM
From: Proud Deplorable	Respond to of 116555

"The ability to lend in the future appears very low right now. However, can the Fed fix that one way or another?" Sure they can but Homeland Security is hogging all the jail cells for people with funny last names instead of the more familiar ones, with the exception of obvious ones like CONrad Black that is. Do you really think they are going to put Greenspan behind bars where he belongs? Greenspan sounds well...too 'green' whereas Conrad Black had two strikes against him in his name The answer to all your question is that consumers have zero faith in govt. and zero faith in investing in their own bankrupt country, the worlds biggest debtor nation, who is on a rampage throughout the world to impose as much 'democracy' as they can before the election proves once again that none exists. How much criminal activity in the markets do you think Joe and Jane Average, all on mind numbing psychiatric drugs anyway, are going to take before they either wake up broke, living on the street, or start using their guns to meat out justice once they realize that it is their trusted politicians that screwed up their lives? The New 2008 Version of Invest in American Bank Stocks Guidebook