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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (484441)	10/31/2003 11:44:05 AM
From: DuckTapeSunroof	Read Replies (3) \| Respond to of 769670

"liquidity driven", absolutely yes. There has been a tidal wave of fiat money unleashed in the economy --- any failure to have a stimulative effect would have to call into question many of the basic tenets of Economics. However, when the Fed is forced to begin the 'mopping up operations' next year, to head off the inflation threat such massive liquidity produces --- then we will see the opposite results. If business is not investing in capital goods on a sustainable basis by then - with the props being kicked out from under the consumer... who has largely been sustained by mortgage refis, cash discounts from auto manufacturers, etc. - then we may find ourselves between a rock and a bigger rock. Look for interest rates to soar after the elections. 2005 could be very difficult.