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To: tradermike_1999 who wrote (294)	10/27/2000 12:39:02 PM
From: Andrew G.	Respond to of 74559

tradermike_1999 : your views on the GDP are right on. I'm starting to wonder if there is a reversal of sequence here, where the FED vollys rate hikes at businesses to avert inflation caused by increased consumer spending and thereby causing decreased cap expenditures which trickles down to decreased consumer spending. But how do we get impulsive consumers to cut down on their debt driven spending? Oh no, could it be by way of job cuts and declining wages? The last shoe to drop would be a declining value of real estate where, in my view, the true 'wealth effect' resides. Home equity loans are a heap of debt and when property assets fall in value, we have a genuine recession on our hands. I don't wish it, but one must be prudent in light of the circumstances which are beyond the control of any of us individually. Since we are mentioning Hume, and Polyani here, I'd call upon you to reflect on Kant's 'categorical imperative'. If we collectively reduce are consumer debt by reversing our negative income/debt ratio and exercise better personal financial management (heaven forbid) we just might have a better economy. Your thoughts ?

To: tradermike_1999 who wrote (294)	10/30/2000 7:21:04 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 74559

Personal savings dropped to -$15.3 billion and is now -.2%, meaning that the average consume is awash in debt. I think the personal savings numbers are suspect. They don't take capital gains into account. What about the people who stopped saving because they stopped working because they had a lot of capital gains? These people will show as negative savers, even though their net worth could have increased tremendously to the point where they don't need to work.