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: Ron Dior who wrote (69450)	2/18/2001 10:01:55 AM
From: Gersh Avery	Read Replies (2) \| Respond to of 99985

Hi Ron .. I know that the US is not Japan .. however: The primary problem in Japan is that the consumer stopped consuming. Every yen that they can save is being stuffed into savings. That condition is what AG wishes to avoid here. This is a major symptom of lack of consumer confidence. Here in the US consumer confidence and spending has become linked to the stock market. As can be seen toward the end of 2000, after the market pulls back, consumer spending slows. In return, as consumer spending slows, company profits fall and stocks fall further. As much as he doesn't like to admit it, AG has to support the market to break up this feedback situation. That is his tightrope. Someday the action of lowering rates may not be enough.