Forum Archive Index - June 2002

["Nick Kearney" <nickk@quicksilver.net.nz>]

Marilyn

The US Government had been intervening with such action during most of
Clinton's years.  That caused most of the current problems.  He printed
money ad nauseum to hold off any economic depression.  The Central Bank,
under his stewardship, manipulated the US economy and the US media, to make
it look like the US was booming and nothing could go wrong.

Yet, under his reign US stocks had p/e ratios of massive disproportion.
Banks were willing to loan to losing companies because Clinton supplied them
with money to do it.  Now the banks can't get their money back, the
companies are worthless and are laying off staff at bulk.  I posted
something yesterday that showed Japan's exports to US increasing but there
is money in US for these products to be bought.  Consumers are slowly
realising that things are bad.  Banks in US, have ZERO interest loans to
entice investment.  Japan likewise.

The US Government won't intervene because there is nothing that intervention
will help now.  The Rubicon has been crossed.  Also, it is the antithesis of
Bush's personality to intervene.  The Central Bank will keep interest rates
at 1.5 - 1.75 % to try to foster spending and investment in equities.  But,
these very equities are reporting massive losses and high debt.  Debt due to
unpaid loans (plenty of money to loan remember) and losses due to false
economic manipulation by Clinton.  Who wants to invest in that!  I have to
agree with Steven.  This will take a year or so to really impact but it
will.  The DOW closed below the critical 9600 level last night.  From there
next support is 9300.  See ya later DOW!

Have a good weekend everyone.

Nk

----- Original Message -----
From: "Marilyn Munroe" <who.c@res.co.nz>
To: "Sharechat" <sharechat@sharechat.co.nz>
Sent: Friday, June 07, 2002 11:22 PM
Subject: [sharechat] Dont underestimate the dynamism of the U S economy
Steven


> Steven Tong wrote;
>
> "There will BE NO RECOVERY IN US EQUITIES THIS YEAR"
>
> I recall another stumble of the U S economy. I refer to the savings & loan
> fiasco.
>
> A rash of unwise lending by small community banks called savings & loan
banks
> had threatened a bust the amounting to what looked like several telephone
> numbers strung together.
>
> The U S congress took over these banks and ruthlessly liquidated them.
Thanks
> to an economic recovery they were able to sell off these assets. I cannot
> recall exactly, but the net result was a small gain or loss for the U S
> taxpayer.
>
> My point is that the U S was able to take decisive corrective action to
> ensure stability and recover.
>
> If there is a melt down on Wall Street I guess we will see the same thing.
>
> The DOW @ 20,000 in 2006?
>
> Boop-doop-de-do Marilyn
>
> Short on diamonds, long on optimism
>
>
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