Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Market Direction Predictions and BS guesses -- Ignore unavailable to you. Want to Upgrade?

To: New Economy who wrote (146)	6/4/2000 10:28:00 PM
From: New Economy	Read Replies (1) \| Respond to of 234

We are in a "New Economy" with its own Business Cycles. Interesting finding: Monetary policy will have a moderate affect on slowing down an expanding economy. One reason suggested was the de-regulation of the mortgage industry in the U.S. In the past when the Fed raised interest rates...housing startups were affected immediately. The authors also argue that there much more severe recession in this New Economy because of poor balance sheets of both consumers and business. Everybody is leveraged to the limit and when things slow down BANG !!! Ripple affect Economy wide. The Fed should read this report out by Goldman Sachs Jan. 1997: "The Brave New Business Cycle: No Recession in Sight," William C. Dudley and Edward F. McKelvey, U.S. Economic Research (Goldman Sachs, Jan. 1997)