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What would you say to your boss if he is crazy about an idea, but you think it stinks?
First you must clarify your understanding of the matter, see where the boss's approach may be in error and then see if you can modify the approach so as to make it a working idea. If ultimately you can't find any was to support the idea then come up with another, and then approach the boos with your findings and listen to his response, either you or he may come on top in the argument but really never go into something without preparation.