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Strategies & Market Trends : Paint The Table
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To: MulhollandDrive who wrote (4162)12/1/2001 2:18:19 PM
From: Augustus Gloop  Read Replies (3) of 23786
 
I don't see low interest rates as the demon here. I see a consumer hangover from massive amounts of 90's debt. Rates will rise and fall based on the ability of the consumer to pay. Right now I'm of the belief that the primary reason for lack of spending is a reduced feeling of prosperity coupled with a high debt load. The zero percent financing game has been around a long time. It will come and go and people will still buy cars and durable goods. They did after the 70's, 80's and early 90's and they will again. The key here is to help the consumer buy WITHOUT piling up more debt. This is one of the reasons why we have seen a tax rebate plan and now discussion of a "Holiday" on SS. Although the cash infusions are only one time deals they allow the consumer to spend without incurring more debt. While I understand we cannot do this forever they do serve as a good tool when coupled with lower rates (something we will often see in weak periods) and TRUE tax reform. The last two are key elements as they will create a recurring revenue stream unlike that of the one time tax rebate. Yes these tougher times than we saw in the 90's BUT keep the faith because lower % rates and lower taxes will eventually equate to more spending and better earnings. The important thing here is not to kill the goose that lays the golden egg (the consumer) with debt in the meantime.

Keep the faith and vote for fine republicans today

This message has been sponsored and paid for by the Gloop for President Group. Opinions do not necessarily represent all 1 of its members <g>
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