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To: Mohan Marette who wrote (95107)2/5/1999 11:16:00 AM
From: Lee  Read Replies (1) | Respond to of 176387
 
Hi Mo,..Re:.'This data should be reassuring to those who thought we'd fall off the face of the earth in 1999.

They also thought that in Dec. '97, ala, these kinds of gains and economic momentum can't continue. <G> And at the end of '96 if I remember correctly. The forecasters are a bunch of Jobal Fisks so their outlook, and therefore, forecasts are always gloomy.

Thanks for the comments, she's been more right than most probably because she's in Chicago instead of DC or NY. <g> But she said also the wage growth was not contributing to inflation because we keep getting new jobs but forgot to mention that productivity has enabled some of this as well. Also there is a good paper at the Fed site about the quality of these new jobs compared with the heavy manufacturing jobs that predominated 20 years ago.



To: Mohan Marette who wrote (95107)2/5/1999 12:33:00 PM
From: stock bull  Read Replies (1) | Respond to of 176387
 
Mohan, re:<<Here are some interesting comments form Swonk of Bank one>> I agree that the comments are indeed interesting. We continue to have an economy that is growing at a rate that the majority of the economists continue to misforecast. This should help corporate profits growth for the year. As pointed out in the article, the negative side is the potential for the increase in inflation. The Fed is in an interesting position. Namely, they need to watch the U.S economy and its effect on the global economy. I for one don't think the Fed's will increase interest rates if they think it will harm the emerging countries and Asia/Japan. What a balancing act! If our economy starts to show signs of inflation, I think the Fed's will try to "talk" the economy into slowing down.

How do you see this playing out?

Stock Bull