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Strategies & Market Trends : Trader J's Inner Circle -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (44922)	7/17/2001 4:31:47 PM
From: ajtj99	Read Replies (1) \| Respond to of 56535

Max, as for consumer spending, the lowered fuel prices have helped some of those who were overextended. I agree much of the $600 is spent already, but you also have to remember that many who carry credit card balances are seeing their APR's drop, giving them more purchasing power. Furthermore, credit card companies are getting more and more aggressive since the rates dropped, and we may see some increased leverage on the part of the consumer near term. If the economy does recover some in the 4th quarter and early next year, disposable income should increase a few notches as a result of the lower interest rates, higher incomes, and lower effective tax rate. I'm not saying it will be dramatic, but I think the consumer spending should be OK until late next summer.