Simple Economics
Take a look at the stock market lately...it appears the bottom has been reached and things have stabilized.
When we were on location in New York last week at the American Stock Exchange, many of the analysts and brokers we spoke with were very optimistic about
the next several months. With the Nasdaq back over the 2000 level and the Dow in the middle 10,000 range, most feel the water is safe to test again.
Which brings us to a discussion about the Federal Reserve. For two years, the Fed continued to raise interest rates in an attempt they said, to thwart inflation.
When the Nasdaq was at the 4,000+ level and we were all feeling wonderful, Alan Greenspan scolded us about irrational exuberance and the dangers of the
wealth effect.
Some people blamed the market fall on the many dot com companies going out of business...but frankly, a lot of these dot coms had business models which
were so poor, they really had no business being IN business to begin with.
$4 trillion of stock equity losses later, the Fed drops interest rates in wholesale fashion. We think it is simple economics..if money is cheaper to borrow, more
companies will borrow to expand and invest in new opportunities, more consumers will buy more cars and washing machines and big-screen TVs, which means
more factories will have to replenish inventories, which means more jobs and more overtime and more commerce...which is what really fuels the economy...not
Congress and certainly not the Fed.....
Let’s hope the Fed has learned its lesson at our expense!
This Week on Emerging Company Report;
Hollywood, CA-Emerging Company Report is the nationally syndicated television program profiling emerging-growth companies
(http://www.emergingcompany.com), featuring informative interviews with the CEOs, insights into their operations and outlooks for their futures.
Featured companies on this week’s edition include;
Steve Rosenthal, President of the Majestic Companies, Ltd., (OTC-BB: MJXC) announced the company’s exclusive license to market a safety guard for buses,
which prevents tragic accidents and injuries resulting from people falling under the path of a bus.
PR Director Shari Edwards of ValCom, Inc. (OTC-BB: VCMI) appeared on the program to update the audience about her company’s recent activity in the motion
picture and television production and distribution industry, including the signing of reality-based TV production contracts, which will not be affected by the
possible SAG and SWG labor strikes which may hit the entertainment industry later this year.
Marc Oppenheimer, CEO of Crystallex International Corporation (AMEX: KRY) appeared on the program announcing his company’s recent revenue and
earnings numbers
Free information packages from the featured companies can be requested by sending an email to info@emergingcompany.com.
Viewers of Emerging Company Report can receive free information in the mail about featured companies by calling the toll-free phone number on their TV
screen. The weekly television program debuted in 1996 and is seen nationally on Friday evenings at 11:00 ET, 8:00 PT, Saturdays at 4:00 PM ET, 1:00 PM PT
and Sunday mornings at 11:00 ET, 8:00 PT. It also airs in New York on Thursdays at 11:30PM and Saturdays at 6:00PM. The program is broadcast to over 30
million cable TV homes in more than 300 cities nationwide.
A complete menu of cable TV channels is available at the Emerging Company Report web site,
emergingcompany.com, where the weekly program may also be viewed "On-Demand" on any computer .
Emerging Company Report television program, Copyright 2001, all rights reserved. Emerging Company Report does not provide an analysis of companies'
financial positions and is not soliciting to purchase or sell securities of the companies, nor are we offering a recommendation of featured companies or their
stocks. Information discussed herein has been provided by the companies and should be verified independently with the companies and a securities analyst.
Emerging Company Report has been paid a cash fee of $11,500.00 by the featured companies, does not accept company stock as payment for services, does not
hold any positions, options or warrants in featured companies and the information herein is not an endorsement by the producers, publisher or parent company
of Emerging Company Report. |
