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To: Robert Douglas who wrote (510)	8/28/1998 11:20:00 PM
From: X Y Zebra	Respond to of 3536

50 basis points now and 50 later, sounds good to me. What's Alan's email address? e-mail address ? why, you be his running mate ? If so... don't beat around bush, do entire 100 points, get it over now !! must keep it short. bye. p.s. Bravo... I second that.

To: Robert Douglas who wrote (510)	8/29/1998 9:29:00 AM
From: Sam	Respond to of 3536

Robert, LK and all, "I am still worried about wages, but I think that the odds now favor that the economy will slow sufficiently over the next year to contain inflation." To join the chorus, a Fed Funds cut is getting to be overdue. On the so-called problem of wages, what is different now from 20 years ago is that so many companies have more flexibility with their labor force, in part due to the decline of unions and in part due to the change in the cultural atmosphere in business. I recall working part time at one of the large money center banks in the midwest in the late 70s editing a newsletter that they put out from their research department. There were several vice presidents working there pulling down large salaries who essentially had nothing to do, who the powers that be/were at the bank would have liked to retire but who simply wanted to keep pulling down their large salaries and have a place to go every day. One would speak endlessly with his daughter, his wife, his friends on the telephone for a good portion of the day. Others shuffled papers, read books in the bank's well stocked library, do crossword puzzles. That sort of thing would not be tolerated today. People had--at least in this bank, and I think in much of corporate America, not so much small business America--implied contracts with their companies, who were at least hesitant to fire those who didn't make total pains in the asses of themselves. The contract wasn't perhaps as strong as in Japan, but it was there nonetheless. The stigma of firing--and of being fired--ended in the 80s. When business conditions turn down, or when it doesn't make sense to pay people more money than they can generate in extra revenue and profit, they will be fired or they will not be hired in the first place. That, I think, is what people who are still worried about rising wages (in addition to the points that Larry made in an earlier post) are missing. So please cut, Alan G. Now. As many are beginning to point out, the Fed is actually raising rates by not doing anything right now. At least lower the inflation premium on the Fed Funds to a more reasonable--but still historically high--2.5-3%, instead of the now roughly 4% (or more, if you believe that the CPI overstates inflation). IMO. s.