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To: baystock who wrote (34684)	5/30/1999 5:15:00 PM
From: Ken98	Read Replies (1) \| Respond to of 116770

<Maybe they are inflating because that is the least worse alternative. > Ram, I think that this is a very real possibility. They are trying to keep us propped up until Japan and Europe can get back on their feet. This is also what Volker said recently. Something to the effect that our stock market bubble is what is keeping everything going and the bubble exists on the back of about 50 stocks, only half of which have any real profits. But the road to hell..... Are they just putting off the day of reckoning? Kind of like all of the small fires that we put out in Yellowstone for decades that created an excess of undergrowth which, when ultimately ignited, created a much more destructive fire that would have ever ocurred without man's intervention previously. Regards, Ken.

To: baystock who wrote (34684)	5/30/1999 7:43:00 PM
From: ahhaha	Respond to of 116770

You certainly don't know the history of the FED. It has been a long series of error after error. It is this giving them credit that is part of the problem They shouldn't get credit for attempting to do what can't be down and doesn't need to be done, and when done does more harm than good. They are attempting fix price in the market. In elementary econ all the Fed Members have lectured endlessly to their students that that can't be done. So why do they attempt to do it? Why are they hypocrites? And why are those who have led the charge against this pretense so reticent now? The threat last fall was not deflation. A bank run is not caused by deflation. It is caused when chaos reigns. There was no threat of run on the banks. The reason why is that such a run isn't possible because the FED has the power to create as much money as you would like. The problem arises because the continued exercise of such an action, creates a terrific inflation. It is inflation that causes the threat, not deflation. Deflation is not a problem. Inflation is such a horrendous force that gold rises because inflation threatens to break the system. The FED is out there gambling with your future by creating tons of money. Please tell me how much credit they deserve for taking risks which they never would need to take. They wouldn't need to take them because the open market would gradually raise and lower rates according to what economy needs. The FED thinks they know better than the market and so they will pay for their mistakes with your dough. Make sure you thank them on your way to the poorhouse.