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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (61613)	12/18/2002 5:15:50 PM
From: GROUND ZERO™	Read Replies (3) \| Respond to of 94695

No, I haven't read his work... I agree, yesterday was a disappointment, but today's downward follow through actually takes advantage of yesterday's sell off and has now formed a pattern which is considerably bullish... tomorrow should be strong... GZ

To: Oeconomicus who wrote (61613)	12/18/2002 10:03:09 PM
From: robert b furman	Respond to of 94695

Hi Bob, One thing I've noticed from being in the car business: Many people who dislike debt are shortening the term they finance their vehicle over. This is also true in housing. As people refinance their homes or cars at lower interest rates - it accelerates their debt reduction ( more goes to principle reduction). Granted some take out equity - but many are simply dropping their payment.This gives them additional disposable income over A LONG TERM FUTURE. The wall of consumer debt is quickly becoming a sugar wall that will disappear quickly vs rock that stands forever. The longer this "no traction" recovery takes to go nowhere - more debt will diminish. To the degree that rates continue to decline, the debt reduction over the long term accelerates. In the auto industry - we have many customers that are trading in 2 1/2 year old vehicles financed for 36 months at 0.0 or .9 and are pushing out the cheap money,with another new vehicle purchase. They are enjoying driving new cars and not having repair expenses or the costs of extended warranties - who needs em - "I'll trade before I need that". It is a significant reason that the auto industry is continuing to have record level sales rates. Those with bad credit - never even get to see this concept. But the general public is enjoying the benefits of reducing the servicing cost of their debts. Just an observation. Bob