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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Lee who wrote (3071)	5/4/2001 9:10:42 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 3536

Capacity utilization is at a very low level right now. That, in combination with low profits, does not bode well for capital spending in the future. This is especially true in the U.S. which has just exited a decade of growth driven in large part by capital spending. I agree with your assessment of the Makin article. It was alarmingly non-alarmist.<g> I believe there are several imbalances that will be corrected in the near future. The trade imbalance and the excess consumption by U.S. consumers are two of the biggest. I still stand by my prediction made several months ago that the Fed Funds rate will drop to 3 1/2 or 3% before this easing cycle is over. Let's see how foreigners value our investments when our rates are below available alternatives.

To: Lee who wrote (3071)	5/6/2001 10:09:12 PM
From: Stoctrash	Respond to of 3536

Lee.....It's all pretty simple IMO. The big 3 threw out these .9% financing deals and have been selling and selling for a few years while times were great. The UAW had the by the balls and now it's time for the "shat" to hit the fan. Hence, Ford cut production and the others are gunna slow down in a large way too....not to mention the 2$ gasoline prices killing the marginal SUV buyers now and going forward. I know one super-mall type deal near me said they had their worst March ever in terms of total units sold.