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Pastimes : Ask Mohan about the Market

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To: Zeev Hed who wrote (10359)12/8/1997 2:25:00 PM
From: Mike M2  Read Replies (1) of 18056
 
Zeev, I would like to make a few points about your lists unemployment is low but the service sector jobs,in general, do not pay as well as manufacturing jobs. Debt has grown faster than incomes- this is not sustainable even if we have a new peak in national income. Low interest rates are mainly due to carry trade and Asian Central bank purchases of U. S. debt-How long can we rely on their support? The move from brain to brawn industries will leave many behind resulting in a shrinking middle class- the size of the middle class is a great source of politcal and economic stability. The reduced deficit is a temporary windfall from a powerfull bull mkt the rate of appreciation must slow and eventually turn negative EVENTUALLY( I hope in my lifetime-g-) I would imagine there are many gimmicks with this balanceing budget talk. I hear people say spending has not been reduced but i have not looked at myself(help anyone) I have a hangover from cold medicine so I'll leave it at that for now. Mike
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