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Strategies & Market Trends : Strictly: Drilling II

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To: gold$10k who wrote (9372)3/14/2002 1:51:11 AM
From: t4texas  Read Replies (1) of 36161
 
valutrader, that is the passage! if the usa saver starts saving instead of spending (or the more common alternative -- borrowing and spending), i am sure you would agree that usa economy comes to a halt quickly. that will scare the daylights out of the market (imagine how the spx futures would have reacted yesterday morning if the retail sales numbers had shown a smaller growth number or even a negative growth), and certainly the foreign investment in our markets will stop too. the foreign money comes out of the usa markets and goes home or to some other investment market.

after greenspan said what we have been thinking for years, it seems now we are playing a waiting game. will the foreign money find a better deal for their money first or will the usa consumer start saving first. (aside: i saw a thing on iwo jima on the history channel tonight, and i imagine the usa consumer will spend to the death before saving.) before americans will save it seems that interest rates are going to have to get more attractive. hum, how does that help the stock markets?
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