Sunday, May 05, 2002

"The Long Boom" is back! "The Sept. 11 terrorist attack was the closest thing to jeopardizing the long boom." "The key issue in the next 10 years is whether we can avoid a weapon of mass destruction going off on U.S. soil. If a suitcase nuke or a rogue nuke goes off in the downtown of a major U.S. city, that could be a shock to the psyche of the American people in a way that would make 9/11 just a small beginning." 2005.01.01 12:54:28 PM  Google It!  comment  []

Struggling Internet service provider to cut 1,200 jobs "In the wake of another unprofitable quarter, Genuity Inc. said it would cut up to 1,200 jobs, or 30 percent of its work force, and reduce its capital spending." "There was no word when or where the cuts among the Internet services provider's 4,000 employees would occur." 10:08:04 AM  Google It!  comment  []

Despite Appearances, Economy Is Still Shaky "Put aside the recession, and the marvelous surge in the first quarter. That certainly did wonders for appearances. But in fact the American economy is like a brightly painted pier without enough piles to support it. Step too hard in the wrong place and the pier sags into the water. The hard part is putting enough piles in place before reality overwhelms appearance." "Just two piles sustained appearances in the first quarter, making the economy seem sturdy. They were stepped-up government spending, for defense at the federal level and public works at the state and local levels, and stepped-up business spending to maintain stockpiles of merchandise after they were depleted during the recession. Take away these supports and the economic growth rate, instead of being a robust 5.8 percent at an annual rate, as announced, would have been a meager 1.3 percent." " . . . inventory replenishment contributed a very hefty 3.1 percentage points to the first quarter's 5.8 percent growth rate. That sort of replenishment is not likely to be topped this quarter, with its sudden signals of weak growth. Why replenish only to be stuck with unsold goods?" "Government spending shows similar stress, after contributing 1.4 percentage points to first-quarter growth, half of it at the federal level and half at the state and local levels. Federal spending went up because of rising outlays for defense. That could happen again. But many states and cities have begun to slash spending in response to less-than-expected tax revenue." 9:47:36 AM  Google It!  comment  []