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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Chip McVickar who wrote (1047)	11/23/1998 1:47:00 AM
From: Frodo Baxter	Read Replies (4) \| Respond to of 3536

Regarding my studies, last time I went to the supermarket, the prices were the same they've always been. I think Burger King recently raised some prices on combo meals. I expect my rent will go up when my lease comes due. So... no deflation. Businesses can't make money just by raising prices??? So what else is new? The hallmark of price stability is that increased profitability derives not from price gouging, but from productivity enhancement. Government statistics on productivity are a few percentage points a year, which is pretty good, but the upper asymptote is Moore's Law, which is about 60% annualized. This, for those who still refuse to get it, will be the enduring legacy of the New Economy. The screed whose link you so generously provided is broadly reflective of general deflation nonsense talk. Oh sure, all the usual catchphrases are there ("malinvestment!", "equity bubble!", "depression!") but of course, they always end up completely begging the question. If the evidence was there, they would point to it, rather than employing painfully trite definitional tautologies. (Note: while internet stocks are indeed a ridiculous bubble, it's not fair to extrapolate the excesses in this sector to the whole market; markets always have favored sectors and favored sectors always tend to excesses) p.s. Barron's has a cool writeup of Coolidge from Sobel, who recently wrote his biography. Anybody read it yet? interactive.wsj.com