Such as?...... -----Original Message----- From: Ray Evans Harrell [mailto:[EMAIL PROTECTED] Sent: Tuesday, June 24, 2003 3:37 AM To: Karen Watters Cole; Keith Hudson Cc: [EMAIL PROTECTED] Subject: Re: No significant products (was Re: [Futurework] Fed running out of ammonition)
What about the products stimulated by the availability of the internet? REH ----- Original Message ----- From: "Keith Hudson" <[EMAIL PROTECTED]> To: "Karen Watters Cole" <[EMAIL PROTECTED]> Cc: <[EMAIL PROTECTED]> Sent: Tuesday, June 24, 2003 2:51 AM Subject: No significant products (was Re: [Futurework] Fed running out of ammonition) > Hi Karen, > > You made a spelling mistake in your subject heading. Did you mean > "admonition" or "ammunition"? > > Either way, I think Greenspan has run out of both! It is clear to me that > he has absolutely no idea of what is going on -- and probably, in truth, > never did have -- neither has any other economist who holds forth in public > at the present time. > > I've recently become fascinated by one simple problem. There is a limited > amount of time in the day that's available to the average middle-class > person (that is, the person with spare spending power) to use any more > significant consumer products. By "significant" I mean (a) something that > is novel and exciting enough to displace the time that is already spent on > existing products, and (b) carry a big enough profit margin which will > stimulate spending power and investment and thus the economy. > > Where is this product? The irony of the IT bubble of 1990-2000 was that > although it absorbed massive spending power by way of "investments", its > typical products were pretty minor -- PCs. MP3s, Playstations and mobile > phones -- relatively lowly priced and, at present, with vanishingly small > profit margins. > > Just think of what the all middle-class and most working class consumers > have been able to achieve during the last century. They have been able to > buy or rent a satisfactory home, they have bought one or more family cars > (and don't have enough family members to need to buy any more now), they > have been able to fill their homes with gadgets, and they have more than > enough entertainments, both at home or at local events. Just what is > supposed to come along which is going to fill our lives with extra > excitement and joy? > > I think we're seeing the end of rampant consumerism. And the sooner that > economists (and politicians) put that into their pipe and smoke it, the > quicker we'll have a better idea of where we're going. > > Keith Hudson > > > At 08:01 23/06/2003 -0700, you wrote: > > > > >Ammo low, Fed eyes last bullet to lift economy > > > > > > > >Federal Reserve's expected interest-rate cut this week may add modest > >stimulus but is not without risks. > > > >By Ron Scherer | Staff writer of The Christian Science Monitor, June 23, > >2003 edition > > > > > > > >NEW YORK - For the past 2-1/2 years, the Federal Reserve has lowered > >interest rates to stimulate the economy. The result has been a virtual > >gully washer of money in the economy. But now, as the Fed contemplates yet > >a 13h cut, it has become much more difficult and complicated to pump up > >the economy by lowering short-term interest rates. > > > > > >So, when the Fed meets Tuesday and Wednesday to review the economy and > >make a decision on interest-rate policy, it will have to consider why this > >rainstorm of cash hasn't done the job. > > > > > >If business won't build new factories at these low interest rates, will > >even lower rates make any difference? And, as interest rates get closer to > >zero, Fed chairman Alan Greenspan will have to ponder if he needs to keep > >some ammo in his pouch in case he needs it later this summer. > > > > > >"The Fed's decisions are becoming increasingly difficult," says Jon > >Blumenfeld, US Interest Rate Strategist at Commerzbank Securities in New York. > > > > > >Despite the difficulties, Fed-watchers expect Alan Greenspan and his > >fellow bankers will reduce rates yet again - probably by a quarter of a > >percent. But, a half a point is not out of the question. > > > ><http://www.csmonitor.com/2003/0623/p02s01-usec.html>http://www.csmonitor.c om/2003/0623/p02s01-usec.<http://www.csmonitor.com/2003/0623/p02s01-usec.htm l>html > > Keith Hudson, 6 Upper Camden Place, Bath, England > > _______________________________________________ > Futurework mailing list > [EMAIL PROTECTED] > http://scribe.uwaterloo.ca/mailman/listinfo/futurework > _______________________________________________ Futurework mailing list [EMAIL PROTECTED] http://scribe.uwaterloo.ca/mailman/listinfo/futurework _______________________________________________ Futurework mailing list [EMAIL PROTECTED] http://scribe.uwaterloo.ca/mailman/listinfo/futurework
