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To: globestocks who wrote (93)11/14/2000 8:05:03 PM
From: Paul Kern  Respond to of 604
 
To launch the scenario:

1) GW is declared the winner.

2) His daddy and daddy's buddies convince him to lower taxes to help them but keep spending the same or higher to help elect more GOP congressmen and Senators in two years.

3) Deficit spending begins and soon the Federal Government is competing with businesses for capital.

4) Interest rates go up slowing the economy. Simultaneously, inflation rears its ugly head because of the deficit spending and the Fed increases interest rates further.

5) We have another Republican recession. Remember the Eisenhower, Nixon, Regan, Bush and, of course, the Hoover recessions. Voila, history repeats.



To: globestocks who wrote (93)11/14/2000 8:09:23 PM
From: Alidotr  Read Replies (1) | Respond to of 604
 
I agree with you 100%. Besides, it makes the assumption that we are all leveraged with debt up to our eyeballs. Where I have some debt, I could eliminate it completely right now. I believe that the individual debt problem is far less than some of the bears indicate.

And, no rate hikes in our near term future.