A request
Junior Member
Joined: Jan 2001
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How much pressure do ypou think Greenspan is putting on institutions
to buy equities? It has already been reported that the markets will make it easier for companies to buy back their own stock to help prop up the market. Also do you think the $20b cash made available was an investment in euros to hedge aginst a falling dollar or was an inscentive for euro banks to buy equities in their markets or in the US markets?
AudiWorld Uber User
Joined: Mar 2000
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Consumer confidence is perhaps the most powerful factor of all.
Uncertainty about the future can result in immediate curtailment in consumer spending. And consumer spending is what has been supporting the U.S. economy for the past year. Give people a reason (like the uncertainty of current events) to wait on large purchases, and you can have sudden and dramatic declines in purchases of cars, homes, home furnishings, appliances...the list goes on and on. The economic impact of Tuesday's terror may be strictly psychic, but consumer confidence is perhaps the most powerful economic factor of all. As for what a war itself can do for a nation's economy, it takes a fairly large and sustained conflict in order for government purchasing to have any material influence on the economy. One thing's for sure: The prospect of war does not instill thoughts of confidence, security and well-being in a population, no matter how many times you might try to convince them that war is economically positive. So while i hate to say it, I think we're almost definitely gonna see across-the-board declines in all the major indices next week. The only question is how big. I've heard estimates of like 5% and 7%, but personally I'll be surprised if it's that little. Mind you it gives me no joy to say any of this. I just think it's reality to come.
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