A Matter of Urgency
Our economy is a mess and there is no light at the end of the tunnel. Even if Fed chairman drops the interest rate to zero percent, there are no takers (You still have to pay it back!). The dot coms fizzled. The $700 billion dollar telecom industry (US) is in a mess. On July 26, JDS Uniphase Corp, which makes optical components for the telecom sector, reported a loss of %50.6 Billion (that is right, Billion) for its fiscal year. PSI Net and 360networks files for chapter 11.
At $700 billion in annual revenues, the U.S. industry is so big that the economy's fortunes often rise and fall with its health. When telecom players boosted their capital spending by 25% per year from 1996 to 2000, to $124 billion, that helped drive torrid economic growth. What's more, telecom is a crucial link in the technology food chain.
I have to write a report on the analysis and recommendation of our present economic doldrums and ways to recover from it. I am looking for a few catalysts that will keep our economy humming again. Any help is appreciated. (Hint: Focus on the Utility sector)
This reminds me of when in high school we had to make our own political party and present a speech and policies. I wrote the speech and said that we would set up more dating agencies for single parents. Since at the time there was a welfare issue with single parents. All of the other classes in our grade seemed to take it seriously except our.
But anyway, this reminds me of the time that my oldest brothers friend had to do this. And he said all of these policies then when asked how he was going to pay for it. He hadn't thought of this before so he just blurted out 'I odn't know? Chook raffles?'
Perhaps this is what the American economy needs. Actually, I think tax reform has helped our country. Maybe a decrease in taxes or something. Or perhaps see what made America tick a few decades ago, before all of the technology. I do think that the technology sector will improve. I just think that it was a mistake to put so much emphasis on it. You see, instead of people buying shares in different segments of the market, people even superbranuation institutions were putting there eggs into one basket. Many have gone broke as a result. I think spreading out your stocks over different market segments will definately lead to stability in the short term and profit in the long.
but kmguru, I don't think that you could state one big quick fix for such a problem in your report. But perhaps infrastructure could be improved? Like improving the technology in those areas. But good project management is a key issue.
Income tax cuts may improve things.
Anyway, I hope I could help somewhat with my limited knowledge of the US economy.