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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (1790)	11/3/2003 1:55:47 PM
From: ild	Read Replies (1) \| Respond to of 110194

How is Ford going to pay off its debts and pensions? Michael Moskow, the president of the Chicago Federal Reserve Bank, said Monday that it's only a matter of time before the auto industry is forced to reduce capacity in the United States. The auto industry, including the Big 3 and foreign transplants, has the capacity to produce around 20 million vehicles in the U.S., about 3 million units above the average sales pace in the last three years, Moskow said in remarks opening a Chicago Fed conference on the outlook for the domestic auto industry. "The question now seems not if, but when and where capacity reductions are going to occur," Moskow said. "The Midwest could be adversely affected if reduction efforts are disproportionately taken by the Big Three." marketwatch.com

To: ild who wrote (1790)	11/3/2003 3:42:33 PM
From: Ramsey Su	Read Replies (1) \| Respond to of 110194

I guess the question should be is the economy going up or down? For sustained real growth, I like to see: definitely more jobs capital expenses up loans for cap ex commercial industry real estate occupancy up expanding trade (more import and more export) revenue growth, not just earnings growth So far, all this optimism can still be explained as direct results of the one time stimulus. Valuation is clearly reflecting smooth sailing forward. As I learned back in 1999, this can go on indefinitely.