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Strategies & Market Trends : Currencies and the Global Capital Markets

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To: Ahda who wrote (2903)1/5/2001 11:19:13 PM
From: Rolla Coasta   of 3536
 
Greed and fear from people drive most markets into tailspin. As you point out about the loan problems in Japan as well as in US, they are created by the greedy behavior of people in the new economy where money could be created with wild forward-looking speculation in boom time. As soon as the speculation looks unreal, the economy turns south, and when the market hits the bottom, fear from people emerges. When the unnecessary panic sets in with absolutely no buyers (even the government) come in unable to pay a dime in the stock market, people begin to rush to their banks and withdraw their money. However, the US economy is so unique and the fundamentals are still strong, especially when the government has big surplus in reserve. We don't need that unnecessary fear to put ourselves into terrible shapes. What I don't like is the fact that people who have bought Euro begins to talk down the US economy and create that unnecessary fear. All in all, the bottom is here, and when the FED begins to solve the credit issues in California, we will be fine. Look for more money influx to the US market. Good luck!

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