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To: Johnny Canuck who wrote (39502)5/21/2003 5:23:27 AM
From: Johnny Canuck  Read Replies (1) | Respond to of 69811
 
Morgan Stanley's Roach: case for deflation "credible" by Julie Rannazzisi
Morgan Stanley's Stephen Roach feels that the case for deflation is credible. In a note to clients, the global economist mentioned three triggers: a cyclically weak economy, post-bubble excess capacity and continued globalization that brings low-cost producers into the market. Economist Richard Berner now pegs the chances of deflation at one in four vs. previous odds of 15 percent. While Berner believes that pricing power is beginning to make a comeback, he also feels that the process could take longer than previously anticipated.