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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (24427)	9/19/1998 12:21:00 PM
From: Gary Burton	Read Replies (1) \| Respond to of 70976

More insider selling at AMAT---1 Dir sold 24,000 at approx 25.13

To: Gottfried who wrote (24427)	9/19/1998 3:56:00 PM
From: Big Bucks	Read Replies (1) \| Respond to of 70976

GM, Thanks for the report/article. Seems to substantiate that more of a downturn is likely in world economies that will continue to pressure/impact the US economy. Sounds like the Japanese will be hurting for quite a while yet. IMO, even if the G-7 does decide to reduce interest rates on a "united" front it will purely be "window dressing" to show a form of solidarity among member nations. I'm thinking that it won't have much/any effect on world economies as deflation is becoming the norm (except in Russia). My reasoning is that no one will loan money to foundering companies that are losing money and already in debt beyond the value of the company, that would be throwing good money after bad, with virtually no chance of recovering the loan which then places the loaning company in a losing situation. The Japanese bankng sector is suffering this scenario right now and many banks are poised to fail since they cannot recoup their outstanding loans to companies/countries that are in default. If no one is borrowing then a small rate cut will be ineffective in stimulating any economic growth. Over extended companies piling on more debt doesn't help the situation regardless of the interest rate reduction. The best way to stimulate these economies is to encourage consumerism by allowing consumers to spend their money on products, which creates more production demand, rather than to tax it away from them before it can stimulate business growth. Just my opinion, BB