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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?


To: Mao II who wrote (30570)2/1/2000 6:53:00 AM
From: IQBAL LATIF  Read Replies (2) | Respond to of 50167
 
I agree but if you look at key GDP deflator up to 2% with rising ECI that is indicative of some pressures but I agree with you that governemnt spending would be lot lower, another twist to this situation is that look at capital spending on hardware and soft ware that has been slowing and inventory built up it may impact some corporate bottom lines, all said and done these signals one of rising bnign inflation and the other of slowing capital spending need to be rightly traded.. the market would move from one end to other in no time, that provides for lot of voltality.. reaffirm VOD...



To: Mao II who wrote (30570)2/1/2000 7:27:00 AM
From: Lee  Read Replies (1) | Respond to of 50167
 
Mao II,..Re:.If you take apart the GDP numbers for the quarter, you can see that the economy is indeed humming along. But a major boost to growth came from an extraordinary increase in government spending, up almost 20 percent over Q3.

Here is a graphic illustration of your point; however, consumer spending still makes up a little over 2/3 of the total and there doesn't appear to be any stimulus to halt that dynamic. <g>

stls.frb.org

Cheers,

Lee