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What if the Asian crisis does not have as strong an economic impact on the world economy as Yardeni is suggesting. Why dont you read some of Steve Roach's economic projections- a man who has been eerily acurate when it comes to his prognostications towards economic growth. His interest rate forecasts have been off the mark, because the traditional relationship between economic growth and inflation has been violated, thus far. In other words, the Phillips curve has not proved out. However, he suggests, rather strongly and with valid statistics, that the melt down in Asia will not ravage worldwide economic growth. I suggest you take his viewpoint into consideration somewhat, as opposed to jumping in, lock-stock-and barrel, with Yardeni. His zealousness about his economic viewpoints turn me off. I prefer a more measured form from the economists in which I place some faith. Roach has demonstrated accuracy with his understanding of the behavior of the economy. Lets not forget that the economy here is charging on full steam, and Europe is emerging out of its recessionary to flat shell. Japan will , with additional proding, stimulate its domestic economy in the near future much more than this latest package. And lets not forget China, an incredible power with a lot of clout. I feel Yardeni is way off base in his doom and gloom projections. And if you dont buy the global economic meltdown theory, you cant buy into his hot air halitosis. |
