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To: pater tenebrarum who wrote (80682)3/14/2001 11:02:39 PM
From: SouthFloridaGuy  Read Replies (3) | Respond to of 436258
 
In other words, a no win situation. Cut rates further ---> devalue dollar denominated assets ------> foreigners bail and the stock market falls, perpetuating further domestic selling.

Don't cut interest rates -----> corporate earnings fall ------> dollar denominated assets fall -------> stock market falls (see above).

Stock Market Falls ------> Household balance sheets fall ------> Consumption drops -------> Recession, Unemployment, etc.

Thank you for your explanation.