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To: Bucky Katt who wrote (5961)4/3/2000 12:25:00 PM
From: James Strauss  Read Replies (2) | Respond to of 13094
 
Good points William...

The heavy debt load is like a ticking time bomb... As long as people are working it's tolerable... If they get laid off during a recession we could see a cascading effect from consumer to business as unemployed consumers default on their loans...

As for productivity gains; I don't think we're near the end of the cycle yet... We've got a good decade of excellent gains ahead of us... While it's true our growth rates are against a higher base than other countries, we still should see enough improvement to keep our economy humming...

Inspite of what Greenspan thinks about the low unemployment numbers, he also realizes that workers pay taxes and pay off their debts... So, I think we'll see a balancing act between keeping the most amount of people working with the least amount of inflation growth... They may have to use some quadratic equations to figure this one out... : >

Jim