As I have stated before, the foreign exchange (FX) industry has been suffering from a lack of trust in its functioning. This lack of trust is evident both between participants in the market, and at least as importantly, between the public and the market.
Though consumption growth had decelerated somewhat over the previous year, the modest slowing was consistent with the deceleration of aggregate demand necessary to better align supply and demand. Businesses, however, appeared to be struggling. As data for the end of 2000 became available, it became clear that businesses--amid disappointing sales and earnings--had abruptly curtailed the record-setting expansion of investment spending.