Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: fedhead who wrote (147243)	9/10/2002 4:18:49 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 164684

Greenspan is betting that if he can shore up the consumer by making them take on more and more debt till the corporations resume spending... I would look at the japanese experience after their bubble burst as a better guide as to what is happening now in the US. Except that Japanese consumers were diligent savers, not borrowers. Lower interest rates didn't stimulate consumer spending in Japan because they weren't particularly interested in borrowing. Here, consumers have been refinancing their mortgages at rates that result in big jumps in their discretionary spending capacity and that cash stimulates spending. BTW, after the '91 recession was officially over (April '91), people were "settling" for lower paying jobs for 2 or 3 more years as industries "restructured" and "downsized" one after another. The economy as a whole recovered, though.