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Pastimes : All Clowns Must Be Destroyed
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To: Glenn D. Rudolph who wrote (28117)4/21/2000 11:49:00 AM
From: Ilaine  Read Replies (1) of 42523
 
The inflation part is real, and we were the only ones to say there was inflation until just recently, the government kept saying there was no inflation. The inverted yield curve is a bellwether of recession several months out. Increased interest rates typically slow down the economy, that's why the Fed is raising them. I don't know how to distinguish between a slowed-down economy and a recession. You could have a slowed down economy that wasn't a traditional recession, one that had low unemployment, but it would still be a recession in comparison to the last couple of years. Higher prices reduce consumption, which reduces output, which causes recession. Or maybe not, but it's time to be careful when considering increasing output on spec.
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