Kelly parrots old news, Greenspan parrots old thinking.
When the Fed raised rates and the discount rate that was about a 5% increase, so 4.5% does not worry me. Does it worry you, if it costs less to maintain good labor than to borrow at the bank, I would think higher loan rates, which is a cost without any increase in benefit to the borrowing employer/corporation is bad, at least with higher wage rates you get something for your money, with higher interest rates you give away more money for NOTHING GAINED.
You quoted"U.S. Q2'99 Unit Labor Costs Gain Is Largest Since +4.5 Pct Q1'94"
If you want this economy to rock and roll, we need liquidity to progress and prosper. And if we overproduce, unlike Greenspan, I see nothing wrong with buyin two cars for the price of one....just because he can't.
I am,
Truly yours,
-Crystal Ball
P.S. The August Employment figures are out tomorrow and based on the rollover of commerce figures, I do not see ANY BIG WAGE INCREASE PRESSURES unlike the worry warts at Fed. I see a market rally, maybe not pre-Labor Day light trading tomorrow (Friday) but next week Tuesday when everyone is back in their places with bright smiling faces...ooops maybe smiles might be next on "wage increase" value fears...better fake a frown instead to keep the Fed happy, God knows they can't stand those happy productive workers that received stock that...surprsie of all surprises...actually became worth something to those employees....you mean we are really paying people to work in America...good heavens, unheard of!!! So thinketh Greedspammer. |
