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.

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

To: Thomas C (Hijacked) who wrote (22951)	8/1/1998 1:16:00 PM
From: Jim S	Respond to of 94695

But don't you think we are headed for deflation? The signs are everywhere, and showing up early in technology/commodity companies. TC: I've heard quite a few similar comments, and am watching with a bit of skepticism for something other than normal pricing variations. Dumb question: If the economy does, in fact, deflate, what happens with Gov't payments (salaries, Social Security, retirements, etc.) that are indexed to inflation? Now that payment increases are being reduced to a percentage of the CPI, what happens if the CPI goes negative? As was said earlier, we certainly live in interesting times! good trading, jim

To: Thomas C (Hijacked) who wrote (22951)	8/1/1998 1:34:00 PM
From: Elllk	Read Replies (1) \| Respond to of 94695

tc Re: <<I just can't believe this massive psychology of 'when will inflation come back' from the 70-80's period.>> Greenspan (and a lot of others) got 3rd degree burns in the late 60s and early 70s when the Europeans were telling us to devalue the dollar. Greenspan was not concerned about European inflation and was convinced and made the argument that inflation was purely a European problem or, at any rate, was not and would not be a US problem. Ever since inflation reared, even in the face of what he thought, he has been obsessed with it. Now that, on the other hand (as good economists say), we feel somewhat similarly immune to Asian deflation, we will probably be led right into a deflationary recession or worse. Larry