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Strategies & Market Trends : Drillbits & Bottlerockets -- Ignore unavailable to you. Want to Upgrade?

To: Original Mad Dog who wrote (5347)	3/13/2001 5:26:50 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 15481

Hi OMD, From your article... >>Paddy Jilek, director of U.S. economics at Credit Suisse First Boston, said consumers will spend less and save more to rebuild eroded wealth, and that could "take quite a while to work through." Jan Hatzius, senior economist at Goldman Sachs, said that without a stock rebound, the economy faces the "biggest pent-up negative wealth effect that you can see in the economic data going back to 1952." The drop in net worth, including a minor amount attributable to nonprofit organizations, was almost entirely because of plunging stock values. The value of direct household stock holdings sank to $6.6 trillion from $8.75 trillion, and the value of household mutual-fund holdings declined to $3 trillion from $3.1 trillion, though some of that could be due to sale of stock, not just falling stock prices. By contrast, the value of household real estate rose to $11 trillion from $10 trillion.<< I read recently that commercial real estate values are beginning to decline. Could household real estate be next? I wonder if the Congress will look into ways of accelerating savings by increasing IRA and Keogh, 401K deductions. They could also accelerate the LCF on the tax forms. I have a feeling that some of the dotbomb holders will need a lifetime to write off their losses. <gg>