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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: JBL who wrote (25324)	11/10/1998 4:44:00 AM
From: JBL	Read Replies (2) \| Respond to of 164684

Consumer Spending - In my earlier post, I did not mention one argument that Bulls often point at these days : strenght in consumer spending. Consumer spending is a function of confidence and credit. Credit is being loosened by Greenspan, and the bulls argue that, as confidence remains high, increased consumption will secure growth, and thus the bull market will remain intact. What these bulls are missing is that credit has been easy for a long time, with savings rates already quite low. As a result, the surge in consumer spending we are now seeing cannot be sustained. As far as consumer confidence, it cannot be much higher than what it is right now. Layoffs (in basic industries, banking and the service sector) and the deteriorating international environment will have negative effect, which will only be reinforced as the Dow weakens.