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Pastimes : How to best deal with KOOKS at this web site

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To: Teri Skogerboe who wrote (1101)8/10/1997 1:36:00 PM
From: Gottfried   of 1894
 
Teri, > for as long as I can remember, we've only worried about inflation.<

IBD is giving deflation a lot of exposure recently. If they hadn't,
I wouldn't worry about it. IBD definitely has an agenda. This
deflation talk may be an attempt to influence Greenspan and company
NOT to raise rates. I believe the Fed will take no action next time they meet.
The effect of deflation would be a drop in prices of goods, and
therefore stock valuations. If you believe deflation will happen,
get into cash. It will be more valuable.
Unlike some European countries, the US has shifted to more part time
employees to control the cost of labor. Since according to IBD (8/11/97) 20% of part time employees would rather have a full time
job, this has inflicted pain on a segment of the work force. The
UPS strike hinges on this issue.
Still, we're much better off than most Europeans with their unem-
ployment rates in excess of 10%. European governments pride themselves
on their social safety net, while allowing a large percentage of the work force to be idle.
US policy is far more realistic and pragmatic. That's why I don't
invest in foreign equities - no matter how promising the returns seem.

GM
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