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.

Technology Stocks : Seagate Technology -- Ignore unavailable to you. Want to Upgrade?

To: David Jones who wrote (6142)	10/30/1998 10:06:00 PM
From: William Epstein	Respond to of 7841

Soapbox; The latest CNBC this afternoon was that inflation is dead and that we need only 2.5% growth in the GNP to get real growth of 2%. At that level there is not much danger of recession although, the economy isn't booming either. I believe this figure. What it shows is that the danger here is deflation and the Fed. must reinflate the economy to create a soft landing. In other words, lower interest rates. This has never happened in my lifetime (53 today's my birthday) but here it is. It's dicey. Disinflation has run its full course. We are down to 1/2% real inflation. It is now dead too. We are right on the edge. We could go into contraction. The Fed Chairman and Treasury must coordinate to keep us out of a depression. Although, interest rates seem low to us when we view the 1/2% real figure, real interest rates are actually, still very high. They can come down quite a bit yet. The banks will have to go along, this time or their business will go down the toilet. PHOTOMAN/William Epstein