StockBull...The Market may want a rate cut, and it may help stimulate R&D, etc. and promote spending, etc. etc., but I'm not so sure it will do much to help the international situation that is lapping at our shores....For example, how will lowering our interest rates help Gilette, who has already cited Asia and Latin America as the reason for corporate slowdown, not U.S. consumer spending?.....This question can be asked of a great deal of companies, with the same answer...
I agree with an american economist, now living/teaching in China, who wrote in the latest issue of Fortune Magazine that improvement in our corporate earnings picture, over the long term, will have to begin in Asia....U.S. tax cuts are a temporary fix that does not address the bigger problem.
Regards, George |
