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Technology Stocks : Gateway (GTW)

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To: gregor who wrote (4328)10/25/1997 4:39:00 PM
From: Mike M2  Read Replies (2) of 8002
 
Gregor, yes I think the risk is deflation the risk of inflation comes from the central banks attempts to stave off deflation through monetary inflation. Productivty in the US is low -under 1% it has been steadily declining for years. The bull propaganda is that productivity is higher but we can't measure it. I don't buy it. During the 20's producivity grew at a 6% rate. The deficit is low because of the huge windfall from the stock mkt bubble-capital gains tax receipts. The has been little reduction in spending . The huge $5 trillion dollar debt is still there and the unfunded future liablities at least twice that. Profits have been enhanced by low interest rates ,share buybacks, stock options and other accounting gimmicks-NOT productivty. Mike
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