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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (284)	6/16/2001 6:16:54 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 435

How does Wall street trading effect the new economy and what's happening? Equity value was estimated at $16 trillion before year 2000. Since then the valuation has been substantially reduced. The monies coming into Wall street however remains the same $200 billion each year. This is the free cash from wages and profits of corporations. Some money will be on the side line until equity valuation moves back up. Some corporate profits are delayed until planned obsolescence and replacement products take a foot hold. The new economy's success depends on investment capability or capacity. Which is the yearly free cash investment. If the free cash holds up yearly then the economy can be sustained and grow as well. Supply side pump however, is always boom and bust due to the effects of pump and dump. Our government runs on deficit to pump our economy will not be able to sustain it yearly. Business cycle can be eliminated only if the government stays out of pump and dump. Tax cut and military build ups were the root causes of business cycles. Last ten years of new economy has no recession cycles because the economy grew on corporate profits and improved personal wages. Need we say more. Bush does not know what trouble he is causing in our economy. We are back to pump and dump business cycles again. We have to vote him out ASAP. In the mean time, we have to rebuild wealth and keep corporate profits high by cost reduction and productivity improvements which will raise wages for skills attained. Then the new economy will be on track again.