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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (87114)	12/18/2000 12:27:41 AM
From: Hawkmoon	Respond to of 132070

he was deadly accurate on the collapse but underestimated the ability of the bankers to stabilize things for now That's assuming that AG doesn't take drastic counteraction to undo the tremendous liquidity squeeze and excessive rate hikes that he inflicted on the system. They have been jerking rates and liquidity back and forth, essentially whipsawing the economy back and forth, in response to the Asian contagion, or Y2K. Don't count the Fed out quite yet... We're not quite to the extent of finacial collapse as we were in 1998. And the Europeans are as much at risk with regard to debt as we are (Turkey, recent Telecom debt issues.. etc). Furthermore, so long as economic growth retains 3% per year, those governmental surpluses should remain in place, which provides great leverage for tax cuts. It can hardly be said that Europe or Asia will enjoy anything but deficits for the foreseeable future. Ask those European governments how they are going to finance their extravagant social entitlement liabilities, especially in light of their growing nationalistic issues. I still believe the US economy is more productive than it's competitors as of this time. Maybe they'll surprise us, but I wouldn't get your hopes us. Regards, Ron