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

To: JRI who wrote (70360)	2/24/2001 8:18:19 PM
From: Doug	Read Replies (1) \| Respond to of 99985

JRI: This is a secular problem affecting distinct parts of the economy and not its entirety. It has been caused by an excess of capital and sector capacity beyond reason . This was also fuelled by the Y2K scare which was also inflated to the advantage of the high techs. These excesses and the monies owed , like the National debt ,cannot be purged by Interest rate cuts. They can both be reduced in relative terms if Inflation is allowed to run wild again. That scenario is not likely. The purging process has just started. We will see liquidation . mergers, reengineering/restructuring and write downs. The Mea Culpas will take time and will be followed by a period of restraint when every major transaction will be crossed by the CFO.