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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (43133)	1/13/1999 9:39:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

Chris, one thing you can count on is AG will do the wrong thing as he has over the past several years- many would take issue with this statement now but see what they say by the end of the year. AG has presided over the greatest credit expansion in history. Price inflation is low as it was during the 20's in the US and during Japan's bubble days in the 80's. The current monetary inflation is in the financial markets. The markets will limit AGs ability to cut rates because the dollar will suffer at some point due to the cuts. Any attempts to prolong the life of the bubble are foolish because the end result will be greater damage to the economy. This economy is fueled by unsustainable trends consumer spending and debt growing faster than incomes, dissaving, wealth effect of the stock market and easy credit. Mike

To: valueminded who wrote (43133)	1/13/1999 1:24:00 PM
From: Earlie	Read Replies (1) \| Respond to of 132070

Chris: Glad to see your comments. Discussion and disagreements make markets. (g) Time will tell whether A.G. can continue to both flood the system with liquidity and also cut rates. Obviously I think he cannot do this (particularly cut rates) as it might/will cut off foreign money flows to the U.S. which are more than important, they are mandatory. Hard to diddle with short term rates with the bond boys showing restlessness in any event. As noted, I think the market's reliance on this belief may prove inappropriate, but I've been wrong a bunch about this market, so it won't be a first. Again, thanks for the comments, as I really want to gain from an exploration of this topic. Best, Earlie