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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (21767)	7/27/2002 6:41:03 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 74559

DJ, rapid interest rate growth to retain value of US$ in the face of competition from hordes of other currencies. That will rebalance supply and demand and maximize revenue for the currency shareholders [USA government and citizens]. If interest rates stay low, borrowers will go nuts when they see the bargains on offer. The effect of raising interest rates will be to rebalance supply and demand for the money and retain a constant value of it against other values which are competing for attention. Share prices will rise despite the rising interest rates because the demand for their stuff will be growing quickly and hence so will profits. Many debts will have been written off [Worldcom, Global Crossing, Globalstar and many many others] so rising interest rates won't be a major hindrance to rising share prices. Growth in all countries where civilisation continues and participation in the global togetherness is enjoyed. Sectors of growth will be the essentials: communication [CDMA and cyberspace], medical developments [CDNA], transport, food, booze, baccy, houses, entertainment. Luxuries will remain in recession because the irrationally exuberant wealth effect will take a long time to return. Profit will result from the good times returning. Mostly in those with special wide-ranging monopolies, such as QUALCOMM, especially when in new areas where the technology works and demand is high and competitors have trouble getting similar services organized, such as CDMA ASICs, but CDMA handsets are commoditized with serious competition among the CDMA licensees meaning only the ingenious, productive, efficient and creative will succeed. Mqurice