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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?


To: Mannie who wrote (7566)10/12/2000 11:19:35 AM
From: Jim Willie CB  Respond to of 65232
 
smart guy just said a truism:
higher oil costs are acting as a consumption tax
the proof is being seen in HomeDepot's numbers
but I suspect a few more shoes will fall soon


been saying this for long time
higher energy costs are NOT inflationary
they squeeze profits, since costs typically cannot be passed along
intense unprecedented levels of competition in this expanding economy

now Bill Seidman says:
nothing will slow down our economy better than $35 oil
I suspect the Fed will have to reduce rates soon


/ Jim