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

To: Knighty Tin who wrote (55681)	4/12/1999 12:18:00 PM
From: valueminded	Respond to of 132070

Mike: Imho, the fact that earnings do not matter any more to this market is sad, not amazing. The fact of the matter is that AG and company are not going to slow the party down by tightening the reserves. Therefore, more peopld/companies of less credit worthiness borrow more money until it finally lets go. The FED had their chance when LTCB gave them a warning shot across the bow. They chose to increase the mania by a further loosing of the credit. IMO, a realization of the FED policy for propping stocks is very clear to saavy investors, therefore, the end is near. As i contemplate the outcome, it looks to me like either an increase in rates coupled with stable pricing or a decrease in rates with subsequent inflation and loss of dollar value is where we are headed. They will get to choose their poison. To your point, either will be bad for stocks, and bad for the "expansion".... Frustrated Bear

To: Knighty Tin who wrote (55681)	4/12/1999 2:16:00 PM
From: Freedom Fighter	Read Replies (2) \| Respond to of 132070

Mike, It's days like today that make me think we are seeing more than just a speculative frenzy. George Soros has hinted that he thinks the global financial system is out of control. I'm not a big fan of George's but I'm starting to think he is right. Deflationary forces in the global economy keep being met with increased liquidity, bailouts, debt rollovers etc... Much of the liquidity keeps flowing into financial assets and is creating ever greater excesses. The Fed, IMF, foreign central banks etc... refuse to allow the bubble to burst and it keeps getting bigger and bigger. I don't think this can end badly anymore. I think disaster is more likely. Wayne