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 : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (10300)	6/24/2003 5:06:14 PM
From: Return to Sender	Respond to of 95525

The FED will cut at least 25 basis points. It won't do much good. The real problem is a combination of high oil prices, lack of enough employment of skilled US workers and most of all... The lack of a business led economic recovery. No matter how low interest rates when companies do not need to expand current capacity to meet (limited) demand when there simply is no reason to borrow anything unless it is to reduce debt. Of course we all can buy a nice home though! As long as we still have a good job of our own or if we have not bungled up our investments too badly. Lower oil prices would seemingly be easier to get to after the successful campaign in Iraq but they too are still MIA. Once they are in place the FED can make a better case for deflation and no need for further easing. Probably not before that though. JMHO, RtS

To: The Ox who wrote (10300)	6/24/2003 5:14:26 PM
From: Ian@SI	Respond to of 95525

I would have explained it as: Cheer up, things could be worse. So I cheered up. Sure enough, things got worse!

To: The Ox who wrote (10300)	6/24/2003 5:50:22 PM
From: Proud_Infidel	Read Replies (1) \| Respond to of 95525

Michael, I happen to concur. Should the Fed keep rates where they are, it would signal to businesses to proceed with projects before rates once again begin moving back up. We need to encourage people to take risks once again.....that is the ONLY way the economy will move forward. Lowering rates does not accomplish this....and it is very questionable what a 25 or 50 incremental basis point move down will do after the 13 rate cuts we've already had. Brian