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Pastimes : Alan Greenspan MUST GO: -- Ignore unavailable to you. Want to Upgrade?

To: Master (Hijacked) who wrote (399)	7/16/2001 12:29:16 AM
From: wdlngduc	Respond to of 494

The headline number masks the truth. The .04% drop in energy prices screams NO INFLATION. Beneath, however, there is a core rate increase of .01%. The signs are there: incipient inflation lurks. The further drop in overinflated energy prices will continue to fall, and continue to mask the underlying reality. By year end, it would not be surprising to see the Fed chairman reverse his posture to start raising rates again! The roller coaster ride all over again. Six rate cuts and no appreciable improvement in an economy that needs more and more dollar-feeding to keep it going. Greenspan is praying that the consumer bails out the economy. The consumer may, but the cost will be high. Next time, the consumer won't be able to. The consumer is tapped out. Greenspan is nearly out of bullets. Rates can only be cut so far and no further. Home refi's will pump in $40 billion this year, to go with the tax rebates, so we may escape a severe recession, but after that...? I shudder to think. Wdlngduc