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To: Ron Kline who wrote (2653)11/11/1997 7:27:00 PM
From: Don Westermeyer  Respond to of 27307
 
Ron,

I don't AG he will raise rates either, but...

If anything he caused the 1987 crash by not raising rates soon enough, not because he simply raised them after it was too late to save it. He was way behind the inflation curve then and it has been pretty clear though the years he won't let that happen again.

I estimate a good chance that he raises rates early next year though.

Actually, it is not a good sign that the market greatly fears a measly 0.25 point rate increase. What would happen if inflation really did show up!

Don



To: Ron Kline who wrote (2653)11/11/1997 7:29:00 PM
From: Bill Harmond  Respond to of 27307
 
>>I was wondering how advertising works when the market turnes down.

I can tell you exactly how advertising works in an economic downturn. It lags.

I don't think Interenet advertising will be affected, though. It's in the early stages...the experimental phase for most companies, and Internet advertising totals considerably less than 1% of total spending. What it could do is slow new advertisers from entering the medium, though, particularly for local sites if we get a recession.