Gary, it's obvious we are heading into a recession. Nothing will stop that, and the Bush team are VERY wise, by recognizing that fact. Cheney is a business man, he knows what's going on in the private sector. It would only help their situation by limiting the amount of damage about to occur in the next 2 years, by sitting down with AG to try slow this downward spiral in the economy. The only way to do that is by lowering rates NOW. Not 2 months from now. Rate changes take 6 months before they take place, therefore it warrants one now, not later. Besides, there's simply not enough $$$$'s to sustain a full blown rally, since $4 trillion in losses have occurred in the past 6 months. But, a rate change now will stop the train from completely derailing.
The home PC changed the world as we know it, and there are no more technology inventions on the horizon that will change the landscape of this world like the PC revolution. Therefore, I don't think we will see any major sustained growth for a long time to come, because there is just to much supply on hand for the demand. We will be stuck in a trading range for YEARS. We are about to find ourselves in the same situation as ASIA if something isn't done to curtail that soon. So don't be surprised if AG cuts on Tuesday.
KM |
