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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (50126)	2/7/2001 8:44:34 PM
From: Mark Adams	Respond to of 94695

From bondtalk.com ECONOMY TALK: Consumer credit rose $3 billion in December, well below market expectations for a $8.9 billion increase. November consumer credit was revised up to +$13.9 billion from +$12.9 billion. December marked the smallest increase since September 1999's $1.8 billion increase. The small increase can be looked at in a few ways. First, it is possible that some consumers have decided to reduce their spending given their uncertainties about the economy. Second, and more optimistically, despite the weakness in the economy, consumers have not been forced to tap into their existing credit lines. Third, some consumers may have taken proceeds from their stock selling and paid off debt they previously incurred to buy stocks. Given the very large drop in margin interest that took place in December (6th biggest going back to 1965), this theory is plausible. Either way, it is a good sign when debt is falling during times of economic stress.