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To: yard_man who wrote (1085)	11/4/1998 2:34:00 PM
From: gregor	Respond to of 1283

>>>What do you think of the timing of the move to lower? It is uncanny at best, IMO. The day before options expired as the market was heading down. I know the official reasons, but remain skeptical.<<< The reality was that some banks were going to eat some hedge fund losses if the feds did not register that cut on that day. Some of it was political also,the Feds are are going to help politically before an election. They are supposed to be non political but both parties do it,,,,and it worked, look at the results. It remains to be seen if the feds lower again, the cut is in the market for sure. If they do not lower again, watch out. Money market rates are already down to 4.5 % for new paper just being issued, and on it's way to 4 %. This is all new to me. It sounds too good to be true. The advice I will give is that at some point in time it will be more attractive to borrow than it will to lend. For this reason I am thinking if rates get a lot lower than they are now I may invest in a winter home in Florida. Property there is still reasonable, and looking to the future if it is relatively cheap to buy now great. I go down 3 or 4 weeks every winter anyway and pay 600 to 700 per week, so I could apply that to the cost of ownership. We are in a reflation period. I can feel it in my bones. The congress will eventually go back to democratic majority, federal spending on social programs will skyrocket again, education on a "new age" level will take over, who knows, world events will necessitate large increases in the defense budget. The risk is shifting away from deflation. IMF funding, for example is anti- deflationary- so you might as well say it is inflationary. These events years in the making but it helps to predict things years in advance because when the short term events unnerve you can stay the course...In Christ.gregor