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


To: IQBAL LATIF who wrote (18666)6/23/1998 10:50:00 PM
From: Cyrus  Read Replies (1) | Respond to of 50167
 
Hi Iqbal

"I have seen fascism rearing its ugly head
from cradle of a economically failed state like Germany. I am not drawing any parallels
here but I am watching with greatest interest the decisions to be taken by Japanese, will
they finally ditch caution and go for those structural reforms which may cure this lingering
problem of 79 trillion yen of bad debt."

World economy circa. 1929, worlds second largest economy had previously endured 10 years of static/shrinking economy.

I see what you are saying. Longer term the world economy should allow for lower US interest rates, taking some pressure off the dollar, this may in turn allow other western countries to lower their rates in return which will hopefully aid in growth.
What do you think?

Keep up the good work!!

Darrell



To: IQBAL LATIF who wrote (18666)6/26/1998 8:04:00 AM
From: Lee  Read Replies (1) | Respond to of 50167
 
Good Morning Ike,..Re:<<Non- inflationary growth and strong economy are the twin engines that are pushing this market forward. >>

The final Q1 GDP of 5.4% yesterday, combined with May existing home sales of 1% and other strong numbers, including consumer confidence does not indicate that US economy will slow dramatically any time soon. Never can just put brakes on, but will have to coast down if any slowing comes. Also, a lot is made about inventory building but it's possible that it is "on purpose" due to strong consumer and orders.

So it looks like your scenario of a continuing strong US economy is on track. But it also depends on continuing low inflation as you pointed out and on a continued strong dollar which not many people recognize or talk about. Good call.

Regards,

Lee