Inflation already was creeping in before OPEC's crisis in '73 Maurice. I remember the failed attempts of wage and price controls that were institued by Fed Chairman Burns and Nixon in the 70 or 71. Printing money without reason or restraint is going to start to become inflationary. Look we had a rise in food, oil, nat gas, fuel just two years ago, what did it do to inflation? Nothing. So commodity inflation isn't exactly the sole reason for inflation. It certainly can help fuel it, but you need wage and other components going in the same direction. Finnished goods for the most part have been falling (except auto's and homes).
The 1987 crunch in USA, New Zealand, Japan in 1990 were property-based crunches caused by borrow-and-hope in increasingly deregulated financial markets. Like there was no tomorrow, people borrowed and bought because prices had always gone up. Even though property was sitting empty. The resulting financial panics flow over into other markets and a general crunch results.
Not necessarily totally true. It was investor worries about Reagan, a comment or two from the Treasury Sec. Baker, Bork losing his bid for the supreme court and the fact that the market was plain overvalued. There was a few other reasons. Inflation wasn't, but wait...Greenspan raised interest rates!! Ah, a confluence of events.
Today you have folks borrowing on credit cards to be in this market. That's scary.
I guess we'll find out won't we.
Okay everyone, line up. Qualcomm results out soon. Place your bets. Doom and gloom or optimism and hope.
Yes we will. AS to the mighty Q....hmmm. $.35, with the usual stiff conference call that we all are use too, with the usual cautionary warnings about this that and the other; with visit from Tero, chuckj and the usual cabal of short sellers.
Year 2002 I'll be older so quit bringing it up!! -:) |
