10/28   Hi, does it make sense now that interest rates are rising and that
        the housing bubble appears to be peaking, that there will be a flux of
        $$$ from housing to stocks?  Evidence of this would be the Dow Jones
        average increasing noticeably over the next 6-12 months.
        \_ Rising interest rates usually hurt the stock market.
           \_ but it will eventually end, and rates will start going down
              again.
              \_ or it will go up, and then oscillate at a higher level
                 for a very very long time.
                 \_ economy/stock market starts to go down, slow too much,
                    and interest rates will start going down again.
                    \_ if inflation remains high, which do you think
                       the fed would pick: inflation or recession?
                       \_ why do you think they would 'choose' either bad
                          thing?  why do you think they have that kind of
                          power over the economy?  if they had the power
                          to 'choose' the state of the economy, they would
                          always choose a strong/healthy/robust economy.
                          was there a point to your question?
                          \_ Err ... the fed does one main thing, adjust
                             the interest rate up or down.  To fight
                             recession, they would lower the interest
                             rate, to fight inflation, they would raise
                             the interest rate. That's what is meant
                             by the fed "choosing".  I think most
                             people understood that.
                             \_ Ok then.  In that case, they would still choose
                                to attempt to get to the magical place in
                                between those two states since either of the
                                other states can/will kill the economy if the
                                condition goes too far.  It is much harder to
                                pull the economy out of a tail spin than it
                                is to keep it from doing so in the first place
                                since both recessionary and inflationary
                                states feed on themselves in a cycle of doom
                                without more and more serious intervention.
                                It is that intervention that the Fed is in a
                                continuous state of attempting to perform.  It
                                is like asking a surgeon if he'd prefer his
                                patient died from a heart attack or a stroke
                                while on the operating table.
                                \_ or it could be a surgeon deciding
                                   whether he should save a man's leg,
                                   but possibly risk the man's life,
                                   or amputate the infected leg.
                                   \_ well except that it can't be.  both
                                      economic conditions are horrible if
                                      they slip beyond a reasonably small
                                      range and feed on themselves.  would
                                      you rather a) destroy the economy or
                                      b) destroy the economy.
                                      \_ how would they "feed on
                                         themselves"?  Do explain.
                                      \_ well sometimes inflation and
                                         recessions will happen and there
                                         is nothing you can do about it.
                                         The only choice you get is pick
                                         one.  why do you believe that only
                                         good things are allowed to happen?
                                         because you said "it can't be"?
                                         bwahahahaha!
                                         have you heard of the term
                                         "stagflation"?
        \_ Buy gold, an AK-47 and stock up on ammunition.
           \_ Uhhhhh, when is this *not* a good idea?
              \_ When you live in CA. You CAN NOT buy anything close to
                 an AK-47 here. Not even the semiautomatic version. Just
                 a .22 LR rimfire superfacially similar looking one.
                 BTW, I am the proud owner of a Bulgarian AK-47 and 75rd
                 drums, with plenty of 7,62 x 39 mm ammo. :)
        \_ Rising interest rates will lead to the rising of the dead. Move
           away from large cities.
           \_ The dead will be raised -- for fuel.
              \_ From 9/14:
                 "http://news.yahoo.com/s/nm/20050914/od_nm/germany_cats_dc
                 German invertor creates renewable fuel. A newspaper say he
                 uses dead cats as the source but he denies it. Fucking
                 Krauts."
        \_ not a good idea.  best investment now could be the I bonds.
           almost 100% probability that it will be more than 6% when
           they set the rate for the next 6 months on 11/1.
           they set the rate for the next 6 months on 11/1 cause the
           variable part of the rate will be 5.7% and the "fixed"
           rate is 1.2% but may be lowered, but should still be
           more than 0.5%