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To: Stefan who wrote (38190)2/5/1999 12:02:00 AM
From: Rob S.  Read Replies (1) | Respond to of 164684
 
I could be . . . but I don't see the flood of liquidity quickly reversing to cause a major downturn - at least not for a year or longer. This will continue to be an overhand on the economy - it can't be expanded at a higher rate or inflation will set in. The FED and other governments have reached about the end of the rope as far as stimulating the world economies from heading toward a downturn. I think the world-wide situation will improve - the longer term trend is still very bullish despite the downturns in Asia and South America. But now it will take more growth of their internal economies rather than primarily massive expansion of their production capacity and exports - too many exports without stimulation of their own fundamentals has led to over-supply and comodity price collapse. The economic expansion will survive - in the longer term course, IMO. The US has yet to see the downside of the creation of the liquidity bubble - we are enjoying the fun part - soon (2001-2004) will come "pay back" - higher inflation and a drain from equity markets.