Zeev's Turnips Patch-No Politics (ZEEV)

[techanalyst1]

But in the 80's interest rates were quite high. Houses weren't selling well because it was so expensive to buy them. When rates came down it spurred more home buying. We also had a pc revolution which led to demand for new products (vcrs and video cameras too, answering phones, cd players, walkmans).

We don't have those conditions now. We need to spur demand to get the economy to pick up without any new big technology around the corner.

Plus.... what about the deficits that states are running? I think California has gotten itself into one big fat mess and after going through the Orange County bankruptcy back in the mid 90's, I'm not so optimistic about the repercusions of spending cuts that are sure to come our way.

The feds can print money, the states cannot.

TA