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Technology Stocks : Nortel Networks (NT)
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To: jack bittner who wrote (9945)2/19/2001 12:07:50 PM
From: Dave  Read Replies (2) of 14638
 
but this time we have good room to drop interest rates further and we have huge federal revenue surpluses with which to stimulate the economy.

I disagree on both accounts:

1: While there is room to drop interest rates, there is also room to raise them. With a falling dollar, the Fed may be pressed to raise rates to keep foreign investors from going Euro. There will be plenty of reason to raise, and to lower, interest rates, and neither will be good.

2: There is no federal revenue surplus. Not one extra dollar, let alone a "huge" surplus. There is, however, a huge budget deficit that has grown larger every year, and added to an ever increasing debt. There will not be a surplus in the next twenty years, at the very least. Those project surpluses are all absurd accounting tricks that require the economy to continue to grow at the rate it did in 1999.

Dave
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