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


To: Dwight E. Karlsen who wrote (9346)11/8/1997 2:57:00 PM
From: Brad Bolen  Read Replies (2) | Respond to of 94695
 
Dwight,

Your optimism is certainly admirable. However, when the author speaks of unemployment he is relating the unwinding of the future caused by the asia/world market meltdown. The FUTURE.

I.E. orders drop significantly from international companies at a time when over supply is already a problem and productivity is at highs. Companies, starting with techs, begin layoffs which cause bozos with stock on credit cards and or margin, or people with bad debt in general, to default. If this gets bad enough, banks get into trouble (witness Japan). Economy in USA then slows down still more and a downward spiral in started when prices are already deflating.

This scenario is a real possiblity and the markets, with gold falling--yields falling--and stocks falling--currencies devalued--all at the same time, are telling you this.

B.