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Technology Stocks : Semi Equipment Analysis
SOXX 343.07-0.5%Jan 26 4:00 PM EST

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To: Return to Sender who wrote (29259)3/10/2006 3:31:19 PM
From: The Ox  Read Replies (1) of 95765
 
I think the markets rely more on corporate coffers then those of the average consumer. While the consumers must continue to spend, it's the capital spending from corporations, banks and investment houses that truly drive the markets. As a general rule, corporate balance sheets are much better off then they were in 2002 and investment houses, as well as hedge funds are also better off then they were back then. Add in that the federal govt is doing more then their part with regards to spending.

I just don't see why the FED has to keep raising rates but it appears that they are setting the stage to do just that. This could be the major factor in whether or not our economy hits the skids later this year. The way the FED has been playing with the "punchbowl" lately borders on the ridiculous. Slam on the accelerator, slam on the break, slam on the accelerator, slam on the break.

Whether or not they are targeting the middle class like BWAC has stated is beyond me. I agree that it's the middle class that ends up getting hurt the most by these wild fluctuations in interest rates.
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