Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (2641)	2/6/2000 7:12:00 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 3543

I'm concerned what will happen when the prospect of economic slowdown, in the form of higher unemployment, lower profits and perhaps that dreaded correction. To throw in a thought, it is not high unemployment which could spell trouble. ... in fact the tight labor markets (I hear that the employment in the States is at record levels and the unemployment rate low, half the rate in Europe) which might lead to inflationary pressures. That can provoke the Fed to raise more aggressively, but this is not the only result. Productivity gains are no longer covering the wage rate increases in tight labor markets. That can reverse growth as companies may elect to consolidate rather than grow at all costs. Underemployment (of capital and labor) would be the outcome rather than the reason.