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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (75332)	2/7/2000 8:47:00 AM
From: valueminded	Read Replies (1) \| Respond to of 132070

Tippet: Good point, certainly Japan's experience would back you up. I am not convinced US will respond same way as we do tend to be debtors not savers. I guess it is a race between increasing cost of credit as a percentage of disposable income and stock market. I see the cost of credit putting the crunch on the consumer before the stock market weakening. People are so convinced to buy the dip etc that they may actually start forgoing consumption to attempt to hold the market afloat. (my opinion) This could end badly as weakening consumption will weaken the dollar as no one will want to support us if we dont buy offshore goods. Also, our FED has (imo) reinforce this "insured stock market" scenario by giving the average Joe the impression they will intervene to keep up the averages.