[Orangedog]

The Fed is playing with fire right now. They are, at least in part, responsible for the where the economy is. Greenspan wated to take the wind out of the sails of stock speculators who were running up share prices to obscene levels. So what did he do?...he raised interest rates. That was when started to lose respect for him, because if he really wanted to just get the day-traders to cool it, he could have raised margain requirements, thus weakening the traders' leverage.

The Fed is printing dollars like mad trying to stave off deflation. We have, IMHO, about 18 months before all this new cash works it's way through the economy. That will be when things get very interesting, to say the least.

[Capitalist Eric]

Agreed. I cashed out of Silicon Valley in '99, and as things started to get worse and worse (macroeconomically speaking), the now-ex-wife asked for everything that demanded cash out-flows... I happily gave her everything she asked for (she gave me a fat check to "ease" the pain). Now, my credit's essentially perfect, and I have zero debt...

Waiting for a little while, to see how things shake out... When the real-estate prices really tank out, that's when I'll make my move... Get as many pieces of property as I can leverage into, and then rent/lease as needs be...

All I have to do is wait.... ;)

[maica]

The Fed is playing with fire right now. They are, at least in part, responsible for the where the economy is. Greenspan wated to take the wind out of the sails of stock speculators who were running up share prices to obscene levels. So what did he do?...he raised interest rates. That was when I started to lose respect for him, because if he really wanted to just get the day-traders to cool it, he could have raised margin requirements, thus weakening the traders' leverage.

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Worth repeating! I saw it that way as well.

[norraad]

So, what will happen when all that new paper cash runs downstream?

I understand from a simple metaphorical approach, but I suspect there are other factors this time.