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.

Strategies & Market Trends : The Options Box -- Ignore unavailable to you. Want to Upgrade?

To: hobo who wrote (9433)	2/6/2001 8:52:14 AM
From: hobo	Respond to of 10876

New Economy faces recession test By Gerard Baker in Washington Published: February 5 2001 19:28GMT \| Last Updated: February 5 2001 21:59GMT After five straight years of record-breaking US growth, the testing of the New Economy is finally upon us. In mid-1995, after years of anaemic economic performance, America suddenly became the world's dynamo once again. Driven by heavy investment in information technology, a decade of industrial restructuring, the steadying hand of a sound monetary policy and financial markets that generated and channelled unprecedented sums of investors' money into profitable ventures, the US was an economy transformed. For five years, average annual growth was over 4 per cent - compared with a long-run average in the previous 20 years of not much more than 2.5 per cent. And with inflation quiescent despite the lowest level of unemployment in 30 years, everyone, it seemed, from boardroom to inner-city housing project, was enjoying the fruits of an economic revolution. But beginning last summer, the virtuous circle of faster growth, heftier investment and rising productivity seemed to break. Under pressure from rising oil prices, higher interest rates and the strong dollar it was the old economy's manufacturing core that snapped first. news.ft.com