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

To: TobagoJack who wrote (21892)	7/31/2002 11:52:42 AM
From: Joe S Pack	Respond to of 74559

Here is some more lie by none other than the Honorable Govt of US. This coupled with natural crooks like GreenCrook, Harvey Mud, Three of Wall street institutional crooks (Citi, JPM, Merrilly we lynch sheeps Lynch), and cooking of books by OMB, we have a very rosy picture ahead indeed. Power hungry GreenCrook will change his color any time any minute to keep the most criminal position in the world. biz.yahoo.com Reuters Business Report Economic Loses Steam in Second Quarter By Glenn Somerville WASHINGTON (Reuters) - U.S. economic growth slackened off sharply during the second quarter and began the year at a slower pace than previously thought, the government said on Wednesday in a report that also confirmed a prolonged economic downturn last year. ADVERTISEMENT The Commerce Department said gross domestic product, or GDP, advanced at a listless 1.1 percent seasonally adjusted annual rate during the April-June second quarter -- half the 2.2 percent pace estimated by Wall Street economists. That followed a revised first-quarter growth rate of 5 percent, which had been previously reported as a more robust 6.1 percent gain. In addition, Commerce said GDP shrank for three straight quarters at the start of 2001, ending any debate over whether the 2001 slump qualified as a recession. ECONOMY TO BE BATTLEGROUND With the Bush administration's handling of the economy shaping up as a keynote issue for congressional elections this fall, the White House moved swiftly to say President Bush remained confident about a steady recovery. "The president does still believe there is strength in the underlying indicators of the economy to support additional growth, continuing to grow later in the year and in the future," spokesman Ari Fleischer told reporters. Analysts said the report showed significantly greater weakness than they had expected but remained optimistic the economy will escape a "double-dip" recession and that the Federal Reserve will not rush to push U.S. interest rates up. "The odds of a double-dip recession are no more than one in four and the Federal Reserve's next (move) should be to raise interest rates, but probably not before March 2003," said economist Mark Vitner of Wachovia Securities in Charlotte, N.C. Share prices sank in morning trade, with the Dow Jones industrial average down more than 100 points as fresh doubts emerged about whether the expansion will be vigorous enough to generate strong corporate profits in coming months. Commerce revised its GDP data back to the start of 1999, revealing that national economic output contracted for three straight quarters during the first nine months of 2001, handily surpassing a rule-of-thumb definition that two quarters or more of declining output amount to a recession. SCANDALS TAKE A TOLL With a tumble in stock prices and a surge in accounting scandals during the spring quarter, consumer spending that fuels two-thirds of national economic activity grew at a much slower 1.9 percent annual rate after increasing at a 3.1 percent pace during the first quarter. Companies added to their stocks of unsold goods for the first time since the fourth quarter of 2000, building inventories at a rate of $1 billion in the second quarter after selling them down by $28.9 billion in the first three months of the year. The dollar slipped on foreign-exchange markets after the GDP report, apparently on concerns that financial market prospects in America might suffer in investors' eyes. Treasury bond prices initially rose but softened later. Analysts said the revisions to last year's GDP, plus the soft second-quarter performance this year, added up to a less robust economic recovery that will require careful handling. "It's much weaker than expected, and the downward revision to growth suggests the recession was a little deeper than first estimated," said economist Sal Guatieri of Bank of Montreal/Harris Bank in Toronto. "The Fed is definitely going to be on hold for some time to come." The Fed's policysetting Federal Open Market Committee next meets to plot interest-rate strategy on August 13. Previously the government had reported that GDP shrank for only one three-month period, during the third quarter last year, which led Bush administration officials to dispute whether the economy had slipped into its first recession in a decade.

To: TobagoJack who wrote (21892)	7/31/2002 9:41:19 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

"Support" for local currencies. Jay, the most common form of looting, a.k.a, capital flight never fails. First someone concoct with his friends a scenario. Choose a country where most likely this scenario will play well. There is no lack of countries without lousy economic policies to choose from. Make sure that no one of his friends will get burned and go for it. It doesn't fail: You have capital flight. So lets an Argentina? OK. Lets go. Who's going to be burned is going to be most Spanish investors who invested 'con gusto' in the 90's. Lousy economic policies in Latin America you don't have to seek. You stumble on them as you step out of the plane before passport control!!! Good. We will do an Argentina, capital will fly out first by those 'on the know'. Cumulatively, dollar stops flying in. Suddenly there is a lack of dollars. Since everyone and his uncle is dumping the local currency, and currency is a product, and products that no one want to have drop in price. So government steps in to "prop" the local currency, via intervening in the market and putting more dollars at the disposition of anyone who wants to have money flying out. Of course the government is "supporting" the local currency for altruism. It does to make sure that the ones -and those are the rich people, and the companies not J6P- who haven't flown at the first go, are not screwed too much by selling their stock of local currency too low. Once the country has been depleted of hard currency, the local economy doesn't stop, people move out and switch the lights off. There are a lot of 'descamisados' (shirtless) left behind and the wheels of the local economy has to continue to turn. Without no dollars, economy grounds to a halt, unless, yes you've guessed, the IMF come with fresh money. The IMF guys tell their secretary: "Rose please dust off the Argentina file for us to fly to Buenos Aires" It is all there. It happens every ten years or so. It is not new. It is just more perfect today than it used to be say, 60 years ago.

To: TobagoJack who wrote (21892)	7/31/2002 9:55:20 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

The looting being so easy. Only hurting some 'descamisados' who don't have the slightest clue how the thing is done. Note that this looting is not decided by some foreigners 16.000 Km away, plotting to screw the country in question. It is decided in common agreement with the locals, not the descamisado type. But local ruling elite. Of course the local ruling elite will blame some outsiders. But they do that just for the cameras. Of course the editor of The Economist, the editor of the WSJ and BusinessWeek know the deal that is going on. But they write there some article talking about, bringing democracy for the sake of avoiding economic crisis. Showing how rich democratic countries are, etc. Well, you read all that stuff when the gorillas were ruling countries. Gorillas back to the barracks the talk was about, opening the economy, selling stateowned enterprises and such. But we know why it fails. Even people who read those papers, and think themeselves as educated and knowleageable, "swallow" the concoction. Of course you can't do a Turkey. Turkey is ripe for a nice looting. But the US needed Turkey's support for dumping some soon to be expired missiles so that the "defence" establishment got some new goodies. Now Turkey is saved again, since little Bush, wants to prove to big Bush that he can get rid of Saddam and again needs Turkey. So remained only Brazil -whose lousy economic policies can be spotted form the Moon- to be looted. It is so simple these things that I wonder why J6P's all world over haven't yet discovered this. But I can tell you, in ten years time is going to be happening again.