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To: Michel Bera who wrote (5904)	7/30/1998 12:41:00 PM
From: Barry Grossman	Respond to of 93625

Michel, RE: "It seems that the US economy is slowing down fast" Do not be persuaded by media stories in this regard. The US economy is not "slowing down fast." If anything, the Asian problems have allowed the US economy to slow down without becoming overheated. I feared last year that if the economy kept going at the pace it was moving, interest rates would have to be raised. This didn't occur because the Asian problems acted as a brake on our economy. Overall, our economy is so large that the slowdown has only been slight, except for certain segments of the economy with high exposure to Asian trade. Net net I think this has been a good thing for the US economy. Here in California, we are more exposed to the vagaries of the Asian situation because of our proximity and because many of our new citizens settle here and maintain close business ties with their previous domiciles. Business is VERY STRONG here in CA in spite of the slowdown in exports to Asia. Where prior to 1991 the CA economy was very exposed to the Aerospace and defense industries, since the collapse of the Soviet Union and the cold war we have moved past this dependence and the high tech and entertainment segments of our CA economy have shown tremendous growth. This has resulted in a large growth in employment, earnings, and housing prices (from their 1990 lows). California is leading the nation in the growth of jobs and earnings and I recently read that much of the growth in the US is coming from here. Do not despair about the US economy. We are doing fine and will continue to do so with the best combination of business conditions occurring that I have seen in my lifetime ongoing. Buy on the dips. You ain't seen nothing yet. Barry