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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Anthony@Pacific who wrote (35182)	5/6/1999 3:26:00 PM
From: BillyJoe McCallister	Respond to of 122087

Says he is worried about labor cost rising, raising the inflation index, think tomorrow morning we get the unemployement/labor index in regards to the amount of money wages rose.

To: Anthony@Pacific who wrote (35182)	5/6/1999 3:26:00 PM
From: Force Majeure	Read Replies (1) \| Respond to of 122087

cbs.marketwatch.com Excerpt: CHICAGO (CBS.MW) -- Financial markets sold off Thursday as Alan Greenspan gave an unabashedly bullish speech on the U.S. economy. The bulk of Greenspan's speech dealt with how higher productivity allows the U.S. economy to boom without generating inflation, but markets focused on the Federal Reserve chairman's conjectures about how the good times might end. . . . Greenspan, speaking to a conference sponsored by the Federal Reserve Bank of Chicago, said increased productivity -- based on new technologies like computers, the Internet, fiberoptics and lasers -- is largely responsible for the phenomenal performance of the U.S. economy in the past eight years. But he suggested that risks of overheating still remain real. He said the Fed will remain "alert to the dramatic changes that are confronting us." "I do not say we are in a new era," he said. "We are far more likely, instead, to be experiencing a structural shift similar to those that have visited our economy from time to time in the past." Greenspan returned to one of his favorite topics: the role of technology, particularly information technology, in transforming the very nature of business. This revolution, which has benefited almost every sector of the economy, has allowed the United States economy to grow without nurturing inflation. He argued for the hypothesis that "the recent acceleration in labor productivity is not just a cyclical phenomenon or a statistical aberration, but reflects -- at least in part -- more deep-seated, still developing, shift in our economic landscape." Lowered expectations and increased competition have forced companies to "concentrate on efforts to hold down costs," which in turns drives further investments in technology and new methods of organization, he said. After explaining the unexpectedly good performance of the economy, Greenspan then turned to how it might end. "There are imbalances in our expansion that, unless redressed, will bring this long run of strong growth and low inflation to a close." . . . He also cautioned against overoptimistic expectations that recent productivity gains would continue or even accelerate in the coming years. Greenspan said troubled economies in East Asia are still fragile, but well on their way to recovery if they continue to stay the course with disciplined policies. He expressed some concern that Latin American economies would falter in their policies.