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dgmodel

Rate Cut...

Would a Fed Rate Cut Boost Consumer Confidence???  

3 members have voted

  1. 1. Would a Fed Rate Cut Boost Consumer Confidence???

    • Yes...
      2
    • No...
      1
    • who cares...
      0


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Let's see,

Consumer spending is 2/3rds of the economy but is 1/3 of GDP.

The reason consumer sentiment plunged is a combination of things 1)Stock market drop 2)Layoffs 3) Terrorism.

The market has been coming back because of better then expecting earnings by some bell weathers. This increase in the market will eventuallyy enlighten the consumers outlook.

- Layoffs. this a lagging economic indicator the economy is usually out of a recession by the time the unemployment rate has hit it's peak. Unfortunatley LAYOFFS have a great impact on the consumer so this is why the talking heads have been barking about a double dipp recession I don't see it happening because of the red hot housing market.

Terrorism- This is the tough one how do we implement a monetary tool to combat this we can't so we can only hope we get these coward's before they do anything else, that will be devastating.

I don't think another rate cut can help confidence..

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