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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Mark Fowler who wrote (8092)	8/2/2001 8:57:05 AM
From: techanalyst1	Respond to of 57684

I have a question I'd like to ask Alan if I were to have the opportunity: If you think that the wealth effect was the reason consumers were spending and confidence was so high and therefore there was a big concern for fueling inflation, and that the reason consumers felt wealthy was the market was going up so much, then why are they still spending and why is consumer confidence still high despite the fact that alot of people have lost alot in the market and the market itself is now at the level it was in 1998? Seems to me, that raising rates because of the market's so called wealth effect on consumers is now totally blown out of the water. Perhaps if he wanted to watch the market, he should have quit raising when it was telling him that corporations needed looser money. The bubble still would have burst. The telcos still would have debt to pay off. There still would have been too much inventory. We still would have companies that couldn't make it. But maybe it wouldn't have spread to other areas so much and maybe he wouldn't have had to lower as much. I think his halo has a crack in it, but if we have bottomed out, people will think it still shines in a year. I rather have stability. No more increasing and decreasing rates this many times. Nice steady increase in corporate profits, Nice steady gains in stocks with pull backs you can buy and hold. TA