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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: abuelita who wrote (56230)	11/21/2004 11:35:25 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Hi Rose. <In a speech to bankers in Frankfurt on Friday, Federal Reserve Chairman Alan Greenspan warned that foreign investors could soon decide that U.S. interest rates (and returns on their money) were too low, and that a depreciating dollar would continue to erode the value of their U.S. holdings; they might then reduce their exposure. His comments sent the dollar plummeting further, to record lows against the euro and the yen.> msnbc.msn.com Wheee!!! Here we go for the final ride which has been in the offing since May 1999 when I thought this all would start happening. It has taken 5 years to get to here instead of the one or two years I thought it would take and the amplitude has been bigger than I guessed. But the process has been much as expected. Even with 911 thrown in and a few shenanigans in the WAT, the global system cruised through without undue duress. Raising the interest rates again should be the easy part. It was the cascading down which was dodgy - collapse was a possibility. I guess US stock markets [and others] will take a dive during the process. Gold will leap around as people fear recession/depression, and then fear success by Uncle Al KBE in maintaining the US$ as the world's pre-eminent money. Companies with lots of debt aren't likely to do very well during the process. MSFT and QCOM with loads of cash will earn more on their interest and their products are recession proof [more or less, compared with cars and overseas holidays anyway]. Even in a recession people can afford a new cyberphone if not a new car or house or carpet or European vacation. Jay will be drooling with anticipation. Mqurice