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

To: UnBelievable who wrote (69497)	2/18/2001 11:03:36 PM
From: Gersh Avery	Read Replies (2) \| Respond to of 99985

All of what you say is correct .. However .. if people buy less wigits then the wigit makers have lower earnings .. I'm not saying that it would be a bad thing for consumer spending to slow to within consumer earning. Just that company earnings based on increasing consumer debt can not last forever .. as you pointed out so very well. So then consumer spending will slow down .. either by the consumer deciding that it would be better to pay down some debt or by credit crash. It seems to me that the element of consumer debt almost guarantees that the feedback lower spending/lower earnings/lower stocks will take place. perpetuating the illusion by propping up the market with additional liquidity, not backed by any real assets, as long as possible, and thereby making the inevitable economic collapse one of truly epic proportions. Something like that .. Then add the demographic picture of the baby boomers taking their retirement payments from their mutual funds and the situation becomes worse. But we probably have two or 3 more years before that starts.