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

To: AC Flyer who wrote (22420)	8/9/2002 12:43:58 PM
From: elmatador	Read Replies (1) \| Respond to of 74559

The ones who got in the rain are the ones who got wet. The system has drained the economy of funds to an extent that impaired its possibilities to keep going. It doesn't mean there is no liquidity. There is. The liquidity made available for the banks is huge at the lower interest rates of today. Lower interest rates do not do the trick. The banks do not find takers worth the risk of lending them money. And this includes major corporations. The main problem is RISK. Pure and simple. Unless this risk factor is removed for the world economy. There won't be any recovery. There is out there: USD10.7 Trillions lost between March 00 and July 02 on both sides of the Atlantic. That's 32% of world's GDP or one USA. The risk is not Brazil is it? The risk is out there. If the risk is going to be taken out by: Locking up crooked CEO/CFOs or diverting the eyes of America's Joe 6 Packs, by invading Iraq, I don't know how. But one think is for sure: The risk has to be extricated out of the economy.