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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Simon who wrote (17253)	4/25/1998 1:33:00 AM
From: Death Sphincter	Respond to of 94695

simon...this is one of the costs in the ECI, premiums have been fairly flat to actually down for a while, many believe this temporary situation has helped to keep a lid on Employment Costs. the idea is that once the premiums start rising the ECI will reflect those increases. last fall several of the biggies mentioned that they would start raising premiums this year. the importance of this is that Greenspan has stated, repeatedly, that he will make a preemptive strike against inflation if he sees looming danger. his #1 indicator is the ECI. if wage pressure starts to sneak into the picture he will act and company paid health insurance can be a significant part off of total employment cost. AG would view a 30% increase as potentially inflationary. carl