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To: IQBAL LATIF who wrote (40176)	7/10/2001 7:34:32 AM
From: IQBAL LATIF	Respond to of 50167

Consumer credit outstanding ..the bright side that it is not expanding the dark side that may be consumer ability to borrow is diminished.. I think that with lower interest rates the consumer may wait a little to look for better rates that may explain the slow down, anyway an explosion in consumer debt must have shown a much bigger problem that of credit needs in a slowing economy to pay of previous debts accumulated, in a slowing period I would tend to accept the later part of the argument.. <Consumer credit outstanding increased by just $6.5 billion in May, about $3 billion shy of consensus. This represents an annualized growth rate of about 5%. The slowing was concentrated in the credit card side. Revolving debt grew at its slowest pace since last December. It should be noted, however, that the December slowdown was followed by the fastest growth in years. Non-revolving debt continued to experience moderate growth, rising by about 4.5% on an annualized basis. Behind the Numbers May’s consumer credit release may be the start of a more sustainable pace of borrowing. Year to date, the pace of borrowing has far outstripped both the pace of spending and income growth. Indeed, rising revolving credit accumulation has driven an acceleration in debt growth throughout 2001. Consumers have been using their credit cards to maintain their pace of spending despite weaker income growth and job creation. The fact that growth in non-revolving debt has slowed reflects waning consumer expenditures on big-ticket items such as automobiles. Consumers are reaching the breaking point in terms of the ability to acquire debt. Debt burdens are near record highs, the savings rate is negative, and the labor market is getting weaker by the day. All of these factors are eroding the consumer’s ability to spend, and this is reflected in the rapid acceleration of personal bankruptcy fillings in the first half of this year. Any further substantial weakening in labor markets will likely drastically curtail growth in consumer credit outstanding.>

To: IQBAL LATIF who wrote (40176)	7/10/2001 7:41:48 AM
From: IQBAL LATIF	Respond to of 50167

I will keep my focus on that important 1192 and break of 1204 area to hit the 1212, although technically we have broken that four months low on 1211 and now we have more than average chance say 60/40 to dip down to 1150 with 1182 and 1167 as initial support, however that said 1192 support was a great area of support on the way up of this bull market and we are now looking that area offering some support. I think MOT will set the tone and I am looking forward to the numbers.. the gaps are big on Comp and are inviting the bear run but we have to see how earnings may define this level at 1200, reports from Detroit IT conference does not look good but islands of stability has started appearing Oracle Japan issued nice numbers so did Yahoo Europe and some other nice news are around, this is range and nimble trading within range is a great possibility. That is what I am doing at yesterday 1202 area we saw twice the SP broke and we are now going to see that keenly and play the resistance and break accordingly. Regards...