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Technology Stocks : JDS Uniphase (JDSU)
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To: eeziee who wrote (23150)11/14/2002 9:32:35 PM
From: ownstock  Read Replies (1) of 24042
 
OT/eeziee:

Open brain, dump contents....

Greenspan is working short term interest rates, which is the lever he was given to adjust, but it is (as we re-found out for the umteenth time) a brake and not an accelerator.

The popular myth is the economy will "naturally" heat up again, just take off the brake: wrong. The loss people experienced in the market makes them reluctant to invest even when faced with overwhelming evidence it is going up...and that is hard to find unless it is going up. The classic catch 22.

My old engineering professor would say this is neither a symmetric nor a linear control loop problem: a car has a brake and an accelerator...they are not tied together, because they work very differently.

So, you have to do a lot more than drop interest rates to get it going again. You have to make it painful to sit on the sidelines with cash in any form. The accelerator, not just the lack of brake. The stick, not just the carrot.

The Dems should really start harping on the economy and how to fix it...GW is too focused on the oil wealth (a small part of the energy sector) to worry about the rest of the economy. That selfishness for his own families' money is the weakness to attack.

With apologies and all due respect he is lucky he has Bin Lauden and the Islamic terrorists helping him sell the idea it is all about homeland security and weapons of mass destruction. Right: like Pakistan or North Korea or even Isreal is more stable than Iraq!

The thing is the Dems need guts to propose anything, let alone raising income taxes in return for lowering capital gains.

-Own
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