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Strategies & Market Trends : John Pitera's Market Laboratory

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To: Patrick Slevin who wrote (7305)2/13/2006 4:27:02 PM
From: robert b furman  Read Replies (1) of 33421
 
HI Patrick,

Couple of big differences.

Carter's cheap money was bottoming at 7.0% if I recall.

Bushes cheap money bottomed at 1.0%.

So there is a pretty good spread between the 2 scenarios.

Keep in mind that globalization has taken the wind out of wage growth inflation.

Back in Carters era unions had COLA adjustment and demand income to keep up with inflation which ran 5-10% per year.

YoverY wage growth this month 3.3.

Expectations of inflation is the hardest component to eliminate and it is nonexistent.

All adds up to a quicker peak.

I hope.

Bob
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