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Pastimes : Ask da_cheif -- Ignore unavailable to you. Want to Upgrade?

To: Moominoid who wrote (5718)	10/4/2001 10:54:11 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 8150

Hello David, The USA was somewhat unnerved buy the manner in which Bush was elected and the markets began selling off with the uncertainty. The Chaney/Bush folks then talked down a prosperous 10 year market with a political agenda..., "tax cuts for an economy in trouble." They got their ineffective tax cuts and also an over sold market, which has threatened the holders of retirement plans and wiped out a great deal of paper liquidity. Something like 35 billion was invested into mutual funds right at the 2000 top.., as opposed to about 380 million that went in 1990. Isn't this now called dumb money...! Fact remains that before the WTC event the economy here was just fine. Some over capacity in communications industry was being worked off in an orderly manner..., and the Internet bubble was shacking out the weak players with a violent pounding, but the major sectors of this countries economy were still firing collectively and the consumer was buying. But the administration exasperated the selling by overplaying a political agenda. Following the tax cuts getting through congress the rhetoric abruptly changed. Isn't this now called dumb dW'ya...! After WTC the economy has to absorb a substantial softening of some key areas and this will take a great deal of time to work out. IMO at least until next year by about November. But I fear this could take substantial longer, as the republicans are expected to lose seats in the congressional elections next year, and politicians will return to their polarity politics. With the WTC event the market traders have an opportunity to buy at prices never expected to be seen again. But there remains an uneasiness about the consumer's ability to return to previous levels. They drive this countries economic engine, and to some degree the worlds. It's IMO that the consumer will return with steady purchasing at slightly lower levels. The power of this purchasing is dependent to a large measure on the administrations ability to convince the USA public the right economic stimulus is in place to assure a confident recovery from the WTC event. But I also remain skeptical of the administrations abilities and expect the Chaney/Bush team to be viewed as inept and ineffective..., both militarily and economically.., and effectively screw up the countries confidence with confusing signals and annoy just about everyone. The congress is already diverging on partisan demands. And by doing this the country will remain in a prolonged contracting environment that is not necessary and stupid. However, this is a great environment for buying stocks [not mutual funds] to hold for the future, and I expect the DJIA and SPX to regain a lot of lost ground. It should be noted the democrats and Gore probably would have not done much better.