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Strategies & Market Trends : New US Economy Policy

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To: Arthur Tang who wrote (44)8/3/1997 7:12:00 AM
From: Arthur Tang   of 435
 
The new economy bypassing monetary policies of the US government.

Liquidity provision by the federal government usually handled by the Federal Reserve bank, now, is complemented by many financial sources. They are foreign government investments, trade credit, low interest loans from foreign banks, financial services such as investment bankers, insurance companies, stock exchanges, and venture capitalists. The ability to leverage financial holdings around the world changes the US monetary policy, limited its effectiveness. Inflation can no longer be controlled by raising interest rate alone to destroy US businesses. Lately straight discount distribution houses were going into bankruptcies or just closing their doors. However, the merchandises moved swiftly when the prices were reduced.

Sharp customers with tight purse strings did better on inflation checks. Over priced automobile never leaves the dealers lot. Our way of life has been changing for the better. The abundance of merchandise from around the world spoiled the newly rich in our country. These newly rich are not the millionaires, but the working stiffs that gets better than minimum wage. Everything has to be cost effective for their hard earned money. Buying habits have changed and for the better also.
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