SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.55+0.2%Dec 5 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: GST who wrote (128416)7/18/2001 2:16:47 AM
From: schrodingers_cat  Read Replies (3) of 164684
 
> But I am not of the belief that rate cuts, even combined with lower oil prices, will lead us out of the woods as hoped.

I'm curious as to why you think that interest rates won't work. Is it because this is a recession driven by a collapse in capital investment? With capacity utilization at 18 year lows, according to today's data, it looks like it will be a while before manufacturing capital investment rebounds.

Or do you think that the high dollar will hurt exports? Given the state of the rest of the world it looks like it will stay high for a while.

I think that with consumer confidence about to get a boost from tax refunds and lower gas prices, and with low interest rates helping to keep construction strong, that the medicine should work as it usually does. If the patient needs more then non-existent inflation and the strong dollar give the Fed plenty of room to increase the dose.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext