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

To: RR who wrote (7693)	10/12/2000 7:47:24 PM
From: Sully-	Read Replies (3) \| Respond to of 65232

Hey RR, Margin call time for me. Woulda, coulda, shoulda......... but didn't take my hand out of the cookie jar. OOF :-\| ================================================================= Economics. Less the bull Falling stock prices will mute growth, but the impact will be minimal -- for now By Staff Writer M. Corey Goldman October 12, 2000: 1:13 p.m. ET NEW YORK (CNNfn) - So what happens to the U.S. economy when you take the bull out of it? As U.S. stock markets racked up more knuckle-whitening, sigh-inducing losses Thursday, analysts and economists alike began the somber task of evaluating the dangers of deteriorating stock prices on the underlying economy, now into its 10th and record year of uninterrupted expansion. So far, the news isn't all that bad; most are clear that the effect of tumbling stock prices on the overall economy, at least so far, will be minimal. To date, the damage has been contained to the technology and consumer sectors -- companies such as Lucent Technologies (LU: Research, Estimates) and Home Depot (HD: Research, Estimates) who have warned that earnings simply won't meet analysts' forecasts. And, they say, a healthy correction in the wake of 1999's unprecedented stock market returns will only help to take the heat off what most see as an already too-hot economy. While growth will definitely slow, it would take a decline of 20 percent-to-30 percent or more in the broader markets to derail the gargantuan North American economy. "There are figures that show roughly 50 percent of households have exposure to equities in some form, and clearly we would start to see a dip in consumer confidence and some retrenchment in spending from the recent sell-off," said Drew Matus, an economist with Lehman Brothers in New York. Still, "I don't think this is necessarily the beginning of a bear market." Stocks teeter on the cliff Within an hour of the opening bell Thursday, the Dow Jones industrial average shed more than 300 points. The Nasdaq began the day to the upside, then slipped back, while the S&P 500 posted steep declines. The Nasdaq is now down 38 percent from its March high; the S&P 500 is off 10 percent, and the Dow Jones industrial average is down 14 percent from its January high. "The market has been in denial for quite some time," said Rob Palombi, a senior economist with Standard & Poor's MMS. "A slowdown in home purchases, auto sales and sales of goods related to the housing sector -- all hurt by rising interest rates -- foretold that a slowdown in corporate profits was inevitable. The question now is whether the Fed has raised rates enough to have an impact, or perhaps even too much." cnnfn.cnn.com Ö¿Ö

To: RR who wrote (7693)	10/12/2000 8:09:32 PM
From: Clappy	Read Replies (1) \| Respond to of 65232

Porchers, I think the Bulls have impregnated the markets. Ms. Nazzy and Ms. Dow are both past due pregnant. For months they have been bulging at the seems. Finally the water broke and we have been seeing the contractions for the past few weeks (or months) now. Dr. Greenspan helped to induce the labor. The last few days, he along with a group of interns (or analysts) have been instructing the two ladies to push hard. They are giving all they got. Huffing and puffing and doing that Lamaz stuff. I think I can see a head... It could quite possibly be the head of a new baby bull! Perhaps just one or two more downward pushes is all it needs. It sure has been a long and intense labor... But it won't be long before we have a spunky new baby bull running around here. I'm glad to sitting here in Voltie's Waiting Room with all of you. Its been a nervous time, but it won't take much longer. Get the cigars ready. It's going to be a celebration! Love, -CousinClappy