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To: Dan3 who wrote (136360)	5/30/2001 1:30:06 PM
From: dale_laroy	Read Replies (2) \| Respond to of 186894

>Something has spooked the credit markets and spooked them badly. I think it was the tax cut, maybe it was something else.< It was almost certainly the tax cut. With the bulk of the tax cut going to the rich, the big money is well aware that the prospects for an economic recovery are dim. And without an economic recovery, we could be headed for renewed deficit spending, probably leading to an increase in taxes on the lower economic brackets further deepening the recession.

To: Dan3 who wrote (136360)	5/30/2001 1:55:03 PM
From: Road Walker	Respond to of 186894

Dan, re: When the FED cuts rates by a full percentage point, and the market reacts by raising the actual rates paid by borrowers by a quarter point, that's a sign to me that any benefits we're going to see from rate cuts have already happened. Rising long term interest rates are the bond markets reaction to a presumed resumption of growth and subsequent inflation threat. John

To: Dan3 who wrote (136360)	5/30/2001 5:37:51 PM
From: herb will	Read Replies (1) \| Respond to of 186894

Dan, “Once a spiral starts, it's hard to stop, especially if you wasted your "economic tool set" instead of saving it for when you needed it.” Thanks, I think you almost have me convinced. Times are really getting tough and from this report in Digitimes, AMD is taking it on the chops. “the proportion of Taiwanese motherboard shipments using AMD processors has declined to 20% and some first-tier motherboard makers’ orders of KT chipsets have fallen by about 50% from the first quarter to 50,000-100,000 units in April and May.” digitimes.com Not too bad for Intel though according to the article. Not great but definitely looking up. “although Pentium 4-based product lines constituted less than 3% of overall shipments when the processor first appeared on the market, after dramatic price cuts at the end of April orders from regional distributors have increased significantly.” I have lived thru downturns in the past and I will live thru this one too, I hope. Herb