SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Newbridge Networks
NN 11.97+5.4%Nov 21 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Tunica Albuginea who wrote (6623)9/17/1998 11:08:00 PM
From: Ian@SI  Read Replies (2) of 18016
 
TA,

Agreed that Mr Greenspan's hands are tied to some degree. However, if he lowers interest rates, that is likely to lead to more decisions at the margin to expand capacity. As there already is a global capacity glut, more companies will have even less pricing power. That in turn is likely to contribute to lower profits, more deflation, and if not acted upon appropriately, more shut downs with resulting job losses. Lowering rates is not a specific enough weapon to have only the desired affects on demand.

Personal tax cuts would be more effective; lowering government debt would put more money on the demand side but adding more capacity would be akin to trying to put out a fire by spraying gasoline on it.

JMHO,
Ian.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News