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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?


To: Arthur Tang who wrote (263)3/12/2001 5:56:58 AM
From: Arthur Tang  Read Replies (1) | Respond to of 435
 
The new economy and the free market structure? What's happening? Why is the FEDs in the dark?

In 1991, the rail roads were failing. The solution was not government bail out, but to change from passenger service to freight hauling, especially autos and trailers. All other freights remained the same. Then, the feeders were spun off. feeders now employ 6 people and are profitable. New development in high speed passenger service may not make money for quite some time yet. It will be a creation of problem waiting to be solved later as long as government subsidizes the passenger service.

Then came the bank problem solved by mergers and acquisition. The big gets bigger. And many branches were closed to allow small banks to move in. The small banks were the corresponding bank accounts in the big banks. Feeders of the big banks you might say.

Now the dotcoms are only feeders of the brick and mortars for advertising. The mergers and acquisitions will produce more feeders in every industry. It is only a matter of time before all the small firms will look at the left overs from big firms.

Free marketers of the top down economists are wondering what hit them. It is all in the organization of the market, trickle down if you will. But it needs an organizational structure to accomplish the efficiency of 9 times gains for each dollar invested in our economy(savings for a rainy day or idle money are killers of fragile economies). Before too long you will see the resurgence of sales representatives for small firms to get efficiency in the free market.

Need we say more, micro-economists are at work again. Top down economists are left in the dust, still wonder what hit them in the eyes(dusts and more dusts to come).

This is the question FEDs raised in one of their speeches wondering why the structure change in the free market, fluctuates the economies around the world so fast. All their economies feed our economy is the answer. When we push for exports, it will be more so.