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To: Think4Yourself who wrote (55434)11/25/1999 11:08:00 AM
From: freddie  Respond to of 95453
 
Perish the thought John, cause if that happens we're going with it. Just hoping the market stays together into Feb.

freddie



To: Think4Yourself who wrote (55434)11/25/1999 1:02:00 PM
From: SliderOnTheBlack  Respond to of 95453
 
JQP - re: the populace withdrawing an extra $500 ea. pre Y2K

Actually what the best analysis that I have read says, is that this will lead to a post Xmas retail shopping boom and in fact; may ultimately exaggerate some inflationary indicators from excess consumer spending.

That study suggested that all that cash will NOT be put back into the bank; but rather will go into the cash register at the local shopping malls & restaurants etc.

Also; the pre-Y2K stockpiling of goods will be a boom to the grocery, drug & paper industries.

It will show up statistically as a spike in consumer spending.

Did you ever give your wife that $500 Xmas Bonus check and have her not spend it ? Actually, did you ever "not" give her that $500 Xmas bonus check - and she still spent it (VBG) ?

Does the "average" (not all) American spend, or invest that extra $500 from a tax law change that he gets back on his tax refund ?

Ever give your kid an extra $20 after doing something extra around the house and not have them spend it ?

... that cash will flow back into the consumer market - it is simply human nature to spend it; rather than to return it back to its original savings, or investment holdings.