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To: Crabbe who wrote (411)	11/6/1997 10:52:00 AM
From: Arik T.G.	Read Replies (1) \| Respond to of 686

Rod, Thanks for a thorough response. I do see the point your'e making, but don't see how it is going to prevent the depression from happening. The supply side is great and getting better all the time, but a medium stock market "correction" of 30% can cut demand of the now so smug private borrowers (2nd mortgage and cards). The increasing productivity turns us all to services, and the now blooming stock market related services may lay off tens of thousands workers, not skilled for anything else but, maybe, used cars salesmanship (-g-), which, in itself, is already shifting to the internet. ATG

To: Crabbe who wrote (411)	11/16/1997 3:09:00 PM
From: P.T.Burnem	Read Replies (1) \| Respond to of 686

I could probably write a book on that subject alone but the point boils down to the fact that there is an ever increaseing use of computers and imbedded controllers in every facit of business and production, the increased productivity allowes for economic growth of yes even 10% or more per year for many many years to come. That allows the Stock Market to grow at that same pace. Don't quit your day's job yet: rising productivity increases supply of goods and sevices that, absent a corresponding increase in demand, generate deflation pressures in the economy. Until recently, rising exports of capital goods more than compensated for sluggish domestic consumption thus resulting in a booming economy with nearly-full employment. It's all over now. The Asian growth miracle, the "new paradigm", the goldilocks US economy are all history. Watch the economy and stock market deflate over the next few months or so. PTB