Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (25790)	12/19/1997 1:04:00 PM
From: Lee	Respond to of 176387

Hank, Good afternoon, Re: <<I believe we are in a deflationary period and the Fed will not admit it>> Do you mean deflationary or disinflationary? I think Alan has expressed concern over asset inflation (stock prices), if you remember the famous "irrational exuberance" statement made last December. Also, some industries have been able to raise prices, notably the airline industry for one. Furthermore, if this economy was truly deflationary, then we would have consistently lower and lower prices which we haven't seen. Given that the PPI was down 11 of the 12 months this year, reflecting very little pricing pressures at the producer level, the CPI hasn't exactly followed and shows yr/yr inlation rate of 1.8%. Producers have little pricing power, even given increased costs in some areas, which means some of them are using technology to offset the increasing cost pressures; else, how could they post higher earnings on increased revenues? Regards, Lee