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To: D.B. Cooper who wrote (11019)7/27/2003 1:27:04 AM
From: Sig  Read Replies (2) | Respond to of 13815
 
Nice post:
Lots of truth there.
I'm with the inflation crowd, its going to be big, dont know when
House worth 50k today, be worth 100k
Debt today =$100K, debt tomorrow $200k
Wages today $10hr, wages tomorrow $20 hr
So this would be considered "progress" in assets and earnings , and everyone feels good, and the debt is not worrysome, no worse so in proportion than today, just credit cards or mortgages. And the Government gets more income from paychecks or taxes.
As far as the stock market goes, the public pays for that with overall assets and returns being less than the investments
The volatility has created an inferno of trading which is drag on stock values because of fees. People are seeking any advantage to beat the averages- an amazing new quantity of investment letters and company analyses being sold.
Every man for himself- dare to be different, if you want to beat the average
Unemployment figures IMO are a poor indicator except for possibly showing a direction - better, or worse.
Technology and efficiency are reducing overall employment per production $. People will be leaving the work force
Benefits will expire Perhaps the trend in unemployment could be somewhat up- to 7 % with little effect.
States get in trouble, trying to emulate the Feds. They cant print their own money (haha)
People are going to start, have started, complaining about their Legislatures overspending -California, for example.
Now, with a deficit, the Fed has a perfect excuse to stop bailing out the States But Greenspan has given States a temporay bone- low interest payments on bond sales.
So there will be a lot of complaining about State Taxes, but hasn't there always been that?
Sig .
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To: D.B. Cooper who wrote (11019)7/27/2003 6:40:15 AM
From: Lizzie Tudor  Read Replies (1) | Respond to of 13815
 
sounds way too alarmist to me, although he makes some good points. I don't think the fed "knows they have a bubble on their hands and their back is against the wall" in the equity markets, but that is just me. They have a globalization issue to deal with which means no wage inflation for some time, same is true for globally produced goods. I doubt we see inflation to the degree he is hypothesizing.