First you write:
"Ideally, as the US economy slowed our interest rates would be cut. This would lessen demand for the currency and bring down its' level. This would help US companies compete and the trade deficit would shrink. Unfortunately, at the present time, the United States is the main demand engine for the world. Now is not the time to pull the demand rug out from under the world economy"
Later you write:
"With the GM strike getting worse, it looks like labor is feeling confident again. Additionally, the era of lower health-care costs seems to be ending with both parties in Congress attacking HMOs. Can higher costs be far behind? Will Greenspan risk his legacy by keeping rates too low to bail out a bunch of economically reckless countries? I'm a bit worried."
Robert,
Thank you for your comments. Your first post (first excerpt above) was very well put, and was a well-written synopsis of what we have discussed on this thread a few months ago. It's in complete agreement with a lot of the, "bulls" thinking on this thread. Including me, somewhat reluctantly. :)
But then your next post (second excerpt above), if I'm reading it correctly, seems to conflict with your first post.
Out of curiosity, where do you stand on what may happen in the US equities markets, say in the next six months or so? I'm a little confused with your responses above. I am interested in your hearing your opinion.
Thanks,
MikeM(From Florida) |
