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Technology Stocks : Intel Corporation (INTC)
INTC 48.32-0.8%Jan 15 3:59 PM EST
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To: Barry Grossman who wrote (27364)7/24/1997 12:09:00 AM
From: Bernard Newman   of 186894
 
Barry,

I had to jump in here. Frankly, I DO WORRY about a deflationary spiral. While the economy is humming along quite nicely NOW, companies are not able to raise prices and can only make the huge profit gains through growing sales and increasing productivity. Once that "catches up" to the available technology, there is a danger of deflation. Perhaps the Fed will try to reflate the economy, but it remains to be seen if it works. *BE SURE* to realize that I am not PREDITING deflation, just saying that in my own humble opinion I see that as the next economic threat on the horizon. Hey, my '97 Ford Explorer cost, with rebates and giveaways, less than the '95 that it replaced. My computer can be replaced cheaper with a better model. 19" color TVs can be had for $100 or so. We are close to deflation now. Again, this is not a prediction, just a concern.

*BERNIE*
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