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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (49431)	4/3/2002 1:03:20 PM
From: Murrey Walker	Read Replies (2) \| Respond to of 65232

so perhaps minimize your protestations If responding to your posts of the impending world wide "malaise / downturn / I'm tellin' ya, ya better batten down the hatches" posts, with some other thinking constitutes protestations, so be it. you are 95% in cash thus you are not a participant in anything I guess I will answer that by going PM and comparing your 5% with my 5%.;-)

To: Jim Willie CB who wrote (49431)	4/3/2002 1:12:58 PM
From: stockman_scott	Read Replies (1) \| Respond to of 65232

Fed's Moskow-US corp spending uncertainties remain By Timothy Ahmann CINCINNATI, Ohio, April 3 (Reuters) - Chicago Federal Reserve President Michael Moskow said on Wednesday that a U.S. economy recovery is under way, but that the timing and magnitude of a pick-up in business investment spending was ``quite uncertain.'' ``On balance, we believe the recovery is underway,'' Moskow said in remarks prepared for delivery to the World Affairs Council of Greater Cincinnati. The Chicago Fed chief, who is not a voting member of the policysetting Federal Open Market Committee this year under the annual rotation of regional Fed leaders, said moderate gains in consumer spending are likely, but his assessment was tempered with caution on the outlook for business spending. Business spending is garnering close attention from Fed officials and private economists because a downturn in that area triggered the U.S. slowdown that turned into a recession in March last year. ``With regard to business investment, many firms remain somewhat cautious. That could continue to weigh on discretionary spending and capital outlays. Nevertheless, recent data suggest that the contraction in business spending is at least moderating,'' he said in comments largely similar to a speech he delivered on March 5. ``In the business sector, as technology advances, at some point firms will need to upgrade their current equipment with more cutting-edge systems. But the timing and ultimate magnitude remain quite uncertain,'' Moskow said. FREE TRADE KEY FOR GROWTH Much of his speech was devoted to the economic benefits of free trade. A key factor in economic growth in the United States and elsewhere, he said, is the process of opening U.S. borders to trade and investment. ``In recent weeks, these advances have been overshadowed by increases in tariffs,'' Moskow said, referring to the United States' recent decisions to increase tariffs on steel and lumber, and ensuing threats from the European Union and Canada to raise duties on some products. He said a number of groups within and without the United States oppose free trade despite its economic benefits. ``Especially in cases regarding displaced workers, their concerns are serious and deserve our attention,'' Moskow said, noting however that economic studies suggest worker dislocation caused by trade accounts for no more than 10 percent of all displaced U.S. workers. He suggested some solutions, including a gradual approach to the phase-out of tariffs to give firms time to adjust, and training programs to offer workers skills for new jobs. Another option would be for the U.S. government to directly compensate those who lose jobs for trade-related reasons. ``Efficiency gains for consumers and producers, arising from lower prices and better use of our resources, are large enough that, even after compensating the 'losers' for their losses, America would still be better off,'' he said. Dealing with jobs lost through trade is likely to be a hot topic on Capitol Hill as lawmakers consider President George W. Bush's request for greater power to negotiate wide-ranging trade pacts, known as trade promotion authority. Senate Democrats have insisted that any legislation to give Bush trade promotion authority be accompanied by a major expansion of trade adjustment assistance to help workers who lose their jobs because of import competition or overseas factory relocation. However, they remain at odds with Republicans over some of the details of that expansion.