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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (78469)	6/12/2001 2:53:51 AM
From: Alex MG	Respond to of 99985

You're right, the excess liquidity will make for some nice rallies. And I'm not totally against catching a ride up <g>

To: Ibexx who wrote (78469)	6/12/2001 4:10:50 AM
From: Kailash	Respond to of 99985

US economy faces hard landing By Alan Beattie in Basle June 11 2001 20:56GMT Financial Times The US economy risks a hard landing unless growth picks up elsewhere in the world, the Bank for International Settlements said on Monday. Imbalances in the US economy - the huge current account deficit, high private debt and low savings ratio - would have to be redressed, according to the annual report of the organisation, which is the central banks' central bank. Andrew Crockett, the bank's general manager, said a prolonged U-shape downturn rather than a sharp V-shaped recovery was most likely. While there had undoubtedly been a sustained rise in US productivity growth, demand had run ahead of supply. "It is important not to exaggerate on the productivity side and plan a demand expansion on that basis," he said. He said a rise in economic growth in the rest of the world and a gradual depreciation of the dollar would enable the US to make a smoother, though more prolonged, transition to stability. "But if these things do not happen, the risk remains of more disruption, and that is something we have always warned about." The BIS said larger and more liquid financial markets had allowed the US to live beyond its means longer than in the past. Greater financial sophistication meant there was "more scope for disruptive adjustments as well as more productive use of capital", Mr Crockett said. The bank's annual report also suggested the US Federal Reserve had less room to cut interest rates than hitherto, citing signs of incipient inflationary pressure such as the increase in long-term US interest rates since March. news.ft.com