Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (67876)	1/29/2001 2:02:43 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 99985

Doug, inventory levels are not what it was 10 years ago ---- several months of consumption, they are lot skinier today around 30 to 40 days. IMHO inventories are in equilibrium as I write this may be another week or two. Perception well ............... that is a complete different animal. Haim

To: Doug who wrote (67876)	1/29/2001 5:17:52 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 99985

Reduction of interest rates is one of the fastest ways to increase demand. People remortgage their loans and get more money for smaller monthly payments. Corporations pay less interest (they are tied to Prime which moves with the feds) thus freeing money for additional capex, and even some credit cards are tied to the prime. If the annual debt service is let say $800 billions (anyone has the right figure?, namely not total debt, but consumer, plus mortgage plus direct bank credit lines), a reduction of 1% from 6.5% to 5.5% (18% reduction), sould result in about $100 Billions ( I am assuming debt service would go down less, by about 12.5%) in available money to stimulate demand, that is like a trillion bucks tax cut over the next ten years, and it is much faster than a tax cut. I did not even include the lower interest rate on margin accounts. Zeev