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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Wally Mastroly who wrote (3231)	2/7/1999 7:08:00 PM
From: marc ultra	Read Replies (3) \| Respond to of 15132

Wally re <<<<<<< Fourth-quarter reports released these past 3 weeks have shown an interesting quirk in the economy: Strong growth in the production of goods and services have far outpaced growth in corporate earnings. How long can this last?.>>>>>>>> When you have deflation in many parts of the world with resultant severe global competition you have an environment with a nearly complete lack of pricing power in many areas combined with a skilled labor shortage and upward pressure in wages. The need to pay higher wages combined with no pricing power equals decreased profits than might otherwise be expected by rising GDP. Of course increased productivity compensates to a degree for this loss of pricing ability Marc