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To: andreas_wonisch who wrote (46485)	7/6/2001 10:13:12 PM
From: tejek	Read Replies (1) \| Respond to of 275872

Ted, Re: It doesn't make sense when Germany, Europe's major market, has shown six consecutive quarters of rising unemployment. Actually unemployment is falling in Germany for some time now (although the rate has slowed down). And opposite to the FRB the ECB's only official focus is price stability. However, their position on that has weakened somewhat although inflation is still a risk. The last rate cut (only by a more symbolic 0.25%) was applauded by the industry but there were also lots of critical voices. Andreas, if I am in error, I apologize.....they said on CNBC yesterday that the unemployment rate had increased 6 quarters in row and that the German economy is weakening. I couldn't find a site to check for accuracy. If what you say is true, maybe the EU has a case for holding the line. Having said that, remember that the employment/unemployment is a lagging indicator. Our first increase in unemployment did not occur until April although the slowdown was well under way late last fall. However even with the actual statistics not confirming it, it would seem there is anecdotal evidence that business has slowed. In fact Bert from Belgium recently posted that his pc biz is experiencing less sales.....although if I remember correctly, he wasn't sure if it was definite trend or not. I am not sure who are criticizing the EU's 1/4 pt rate cut but it doesn't seem that their position is appropriate. They sound like the US economists who criticized the feds/Greenspan for cutting the first time. ted