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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Tulvio Durand who wrote (1917)	2/16/2001 10:58:25 AM
From: Street Hawk	Read Replies (2) \| Respond to of 74559

STAGFLATION? Seems as if Greenspan's overzealous use of the printing presses is causing some problems. The aftermath of a bubble is not solved with extra liquidity and lower Fed rates. TIME is the only healer. Money Supply seems to be growing faster than Goods Supply. The dollar could be weakening when the vaunted "2nd half" recovery doesn't occur. Leading to higher inflation. Combined with a weakening demand for cyclical goods and that points towards possible stagflation. What a mess. The headline PPI soared 1.1% in January, almost four times the expected 0.3%. The core PPI -- which excludes energy and food prices -- was up 0.7%, compared with the expected 0.1% rise. Economists weren't sure how to take the report.