Greenspan can only fix the absurdity of these prices by delaying the rate cut once again. Which is exactly what I expect.
During the past week, Bethlehem Steel Corp. (NYSE: BS) said it was closing a mill, and Wheeling-Pittsburgh, a subsidiary of steel maker WHX Corp. (NYSE: WHX), filed for bankruptcy. In the past month, steel makers USX-U.S. Steel Group (NYSE: X) and LTV Corp. (NYSE: LTV) also announced curtailments of operations.
DaimlerChrysler AG (NYSE: DCX) , General Motors Corp. (NYSE: GM), and Ford Motor Co. (NYSE: F) all plan to idle vehicle assembly plans over Thanksgiving week due to growing inventories of unsold cars and trucks.
The auto industry led U.S. corporations in October job cuts, according to a monthly report by outplacement firm Challenger, Gray & Christmas. Over 10,000 people were expected to have lost auto industry jobs in October, bringing the year-to-date industry total to more than 51,000, more than double the 20,000-plus job losses of the same period last year.
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There is a lot more than a pricey stock market for AG to ponder.
I believe he will cut in January, whether CSCO is overpriced or not.
Fred |
