Man, you're a good writer, and to the point.
It would be a difficult task arguing with you <G>
There is still lots of room left to lower interest rates. Remember, a decrease from 1.25% to 1% is, effectively, a 20% decrease. That is very large, by comparison, to previous rate moves.
Have to disagree, at this low level, don't think 0.25% make much difference any more. Perhaps disgusted with such low interest rate, some of CD holders might convert to equity market.
Lowering again will only confirm that US economy is still in deep doodoo and lose confidence of investors.
At this point, I believe the major problem is shrinking demand (not about cutting more cost.) The past 4 months was absolute disaster for apparel industry.
It was worse than after 9/11.
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As you have said, maybe it is a local bubble, but it sure is bubbly over here in So. Calif...
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I basically agree with you on sideway for next few years, only difference is I think we have one more major down turn left. We'll see...
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Yep, I don't like weak dollar, I can feel it when I travel, $$ buys less these days, a LOT less... |
