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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Bill Wexler who wrote (8230)10/6/1998 4:51:00 AM
From: Skeeter Bug  Read Replies (2) of 42834
 
>>The current global economic crisis is just another speed bump in the U.S. economic expansion.<<

that is your premise. i'm leaning toward disagreeing. at best i see a foggy future. we suffer from global over supply problems. wonder why korea is having problems? they can't get a return on easy credit investment. asian and latin demand is toast. lower interest rates spur further expansion.

tons of debt that people have to pay. or, i guess, we pay. look at the slaughter in the bank sector. our goods get more expensive relative to other country's goods. china devalues soon. hong kong does too. so does brazil. the situation gets worse.

at some point the us will be producing too many goods and credit will tighten. we may go up first, but imho that isn't healthy. the best thing to occur would be to stay where we are at and have companies grow their earnings to support these levels with historical fundamental norms.

there is a concept known as spiraling. one thing leads to another which leads to another - no one thing is a big deal but the whole is BIG.

i hope i'm wrong. i like working.

nypostonline.com
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