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To: Jerry Olson who wrote (26427)	9/20/1999 8:18:00 PM
From: HairBall	Read Replies (1) \| Respond to of 99985

OJ: companies can ill afford to raise prices on their products...way too much competition out there...customers will simply buy from someone else... this is in fact the essence of our benign inflation.. OK, this is scary....I agree...<g> Way to much cheap labor in this "small" world. In the USA today, the suites are getting rich, while they squeeze the blue collars via the offshore option/threat. So increased wages of the blue collar kind is in doubt. But, more and more jobs today are of the white collar persuation....<g> Of that, we have a BIG shortage, so it seems. Regards, LG

To: Jerry Olson who wrote (26427)	9/21/1999 8:52:00 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 99985

OJ, you may have a point there...however, if rising wages and input costs are not passed on, margins will inevitably shrink further, leading to a slowdown in corporate profitability. re. the Fed, this too is something i have been considering lately, namely that it is possible that the Fed will not tighten further because of the problems other countries experience as well as the strain in the credit markets as evidenced by the vast increase in credit spreads. possibly the Fed will be content to leave things alone at the next FOMC meeting and merely change the bias until further economic evidence trickles in. i'm certain though that there will be heated debates over the signs of emerging cost push inflation at that meeting. whether the hawks will prevail or not is anyone's guess at this point. regards, hb