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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?


To: IQBAL LATIF who wrote (13594)11/6/1997 11:38:00 PM
From: Cyrus  Read Replies (1) | Respond to of 50167
 
Iqbal Latif:
Have we not painted ourselves into a corner here. If I understand your post correctly you are hoping
for a number smaller than 4.8% unemployment. If this is the case it may temporarily remove some
deflation fears for now, what economy can sustain this rate of unemployment. We may be entering a
new wave of productivity but eventually we will cross over the line and head the other way in which
case the markets will surly take another hit. Bonds are headed lower yet they are sold like there is no
tomorrow. This is perhaps a sign of investor sentiment, which in turn spells a direction for the
economy. Investors reap the rewards of consumers, and although most consumers spending habits
are not tied directly to the market, their pensions are. These things have a way of playing on
themselves. Although I do not wish for this scenario to be true I also somehow believe that unless
something major on the plus side happens we may be a month late in really seeing the direction of the
market.
Your reply please
Darrell