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To: Terry Rose who wrote (12161)	5/25/1998 11:19:00 PM
From: Sleeperz	Read Replies (1) \| Respond to of 116833

When Asia gets out of their current crisis and starts buying US goods again, inflation will occur and Greenspan then will increase interest rates. Until then The Asian crisis is dampening growth in the US. cl >>> I personally believe that Greenspan is walking a tightrope while he delays an interest rate increase which is long overdue. Most likely he has an agreement with Clinton and or Japan to hold back on any interest rate increase. The main inflationary data (stock prices, employee stock options in place of salary, and housing costs) are not counted in the CPI so in reality inflation is already here. However at this point in time reality is not part of the equation.<<<

To: Terry Rose who wrote (12161)	5/25/1998 11:34:00 PM
From: philv	Read Replies (4) \| Respond to of 116833

Terry: S. Korea down almost 6%. Asia still a question mark. I read an article suggesting the Feds will decrease interest rates due to the softening economy. I know there is inflation out there, especially in assets, but am not yet convinced of its prevalence, as a market crash would wipe out this inflation instantly. This is what may be causing Greenspan to walk the tightrope? However, as time goes on, in the absence of any market correction, asset inflation will spill over into other aspects, as people begin to cash in. So, it will be interesting to see which way the teeter totters. An interest rate hike won't do the terrific trade imbalance any good either. Japan and the rest of Asia need a high $US so they can export their way back to prosperity. And they need a prosperous US economy. Greenspan is walking a tightrope and juggling many balls at the same time! Phil