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Strategies & Market Trends : New US Economy Policy -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (157)	5/17/1998 9:54:00 PM
From: Arthur Tang	Read Replies (1) \| Respond to of 435

The new economy and how it is evaluated? Top down economists use their indicators, which are mostly indexes which were selected factors averaged or multiplied by fudge factors. They are trailing indicators and often readjusted next time period. The new economy is run by micro-economists who evaluated earnings of businesses and job growth. Currently they are worried about auto dealers and inventory moves. Foreign car dealer is offering $5000 check for new cars starting at $8893.00. $2000 rebate and 0% interest for 6 years. Small businesses in town are closing their doors. If FEDS started going around town they would see the small business activities just by looking at the parking lots. First quarter economy gains of 4.5% will soon average down, like last year. Interest rate reduction is more likely than increasing. Last year's rate increase tightened liquidity and has not been adjusted back yet. Small business suffers first and forever. Better watch the new economy and never mind the old indicators.