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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: daryll40 who wrote (39904)	11/23/2000 10:59:30 AM
From: michael97123	Respond to of 70976

"On the other hand, if Greenspan monetizes the oil shock, we could be setting ourselves up for an inflationary spiral a la 1973-1980. So maybe a little pain now will ward off long term pain later." You are scaring me. The economy is too robust to fall into stagflation of the 70's. It's the recession that will create that situation, not a little inflation. PS NY Times business section talk to the fact that small reductions of interest rates from these still historically low levels will NOT spur the economy and big cuts in rates will hurt the dollar and cause cash outflows, particularly to europe. What they suggested is demand side tax cuts to the middle class to encourage spending at retail. They also said budget deficits not surplus might be needed and that current political correctness re: deficits might be wrong. Welcome back Keynes. Happy TG!