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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (134524)	3/14/2001 12:22:42 PM
From: hmaly	Read Replies (1) \| Respond to of 1589266

Ted Re.. Why is Wall Street panicking? The 1.1% jump in the producer price index for January raises the possibility that the Fed chairman is now facing a scenario that all central banks dread: inflation rising as the economy slows. When this happens, a central bank's hands are tied. The threat of inflation prevents it from cutting interest rates, the action it would normally take to boost growth. As a result, it must let a recession run its natural course. The Fed has reduced its key fed funds target twice already in 2001 -- by half a percentage point on both occasions -- because it fears that a slowdown is under way. Stag Party Investors had come to accept that a slowing would take place and that it would be shallow and short-lived. Of course, they understood that the deceleration was going to hurt company profits, but the stock market moves on perceptions of the future. And as long as a recovery could be expected in the latter part of 2001 or perhaps 2002, investors were happy to hold stocks. <http://www.thestreet.com/markets/marketfeatures/1310053.html;<<< Ted, very interesting article. This paragraph seems to have hit it on the head as far as the market is concerned. You will note that nowhere in the article does it say the market downturn is caused by fears of a tax cut. In fact the article states just the opposite; that the fear is that AG cannot do it himself and needs help. And that is precisely what I am trying to say. The gov. needs to get its act together, eliminate corruption and pork, get mean and lean; so we can return to being a first class power. Starting class warfare isn't going to get it done. Saying the rich are greedy when it is the corruption that is the problem won't get it done. Trying to say GW is stupid when the Dems. appear to be trying to cover their own corruption won't get it done. The public sees the rich getting out of paying taxes because they bribe their congressman; not because the rates are lowered. Enforce the the tax rates by eliminating deductions, not by increasing reasons for the rich to give you bribes.