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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Captain Jack who wrote (28004)1/19/2002 12:18:05 PM
From: Steve Lee  Read Replies (1) | Respond to of 52237
 
"it was A Gs exuberance in raising rates that caused the recession to be as long and deep as it is."

Interesting, I believe the recession has more to do with the easy money in the late 90's from low rates and generous VCs.

Demand went up at an unsustainable rate while companies had the OPM to expand as if the deamnd would continue to rise ad infinitum. This recession is the effect of the resulting overcapacity. Please explain how a rate rise can cause a recession where factory and fab utilisation are at lows and where consumer activity is still strong.



To: Captain Jack who wrote (28004)1/21/2002 12:43:45 AM
From: bobby beara  Respond to of 52237
 
it was A Gs exuberance in raising rates that caused the recession to be as long and deep as it is. <<

that's a big assumption, an assumption that the feds have supreme control over the economy and can direct the future of millions of independent organisations and business people, and can somehow control the inherent boom bust cycle built into the capitalist system.

certainly govt has a big role in economies, but they cannot dictate future events,

fark dude the recession is mild right now, compared to the last 100 years, the people who are in a recession or a depression are people who bought and held enron, exds, psi, yadda yadda,

you can start talking about a deep recession if the unemployment gets over 10%, that would be ugly.