US economy gathering steam. Part II

MattK · 02-27-2004

Another article about deflation

quote:

"Independent Economic Researcher A. Gary Shilling’s last two books have been all about the “D” word, and he is still a true believer. The Elliott Wave Theorist’s Bob Prechter’s latest book is “Conquer the Crash,” in which he talks about a coming deflation and how to cope with it. John Makin, an American Enterprise Institute Scholar who also works the hedge fund side of the Street, hasn’t published a book on deflation, but says he “probably should. I’m really looking at continuing disinflation and the Fed’s seeming indifference thereto.” And John has written copiously and cogently on same.

This trio, quite evidently, are marching to a different drummer than the herd of optimistic prognosticators whose economic predictions already have produced any number of cheery “outlook” pieces in this still-new year. So what do they think they see that most economists are missing, amid their celebrations of booming GDP and quiescent inflation? Deflation, of course. I gathered them into a conference call last week, and challenged them to worry me. "

They did a pretty good job."

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02-27-2004	#1
MattK Members Join Date: Oct 2002 Posts: 97	Another article about deflation quote: "Independent Economic Researcher A. Gary Shilling’s last two books have been all about the “D” word, and he is still a true believer. The Elliott Wave Theorist’s Bob Prechter’s latest book is “Conquer the Crash,” in which he talks about a coming deflation and how to cope with it. John Makin, an American Enterprise Institute Scholar who also works the hedge fund side of the Street, hasn’t published a book on deflation, but says he “probably should. I’m really looking at continuing disinflation and the Fed’s seeming indifference thereto.” And John has written copiously and cogently on same. This trio, quite evidently, are marching to a different drummer than the herd of optimistic prognosticators whose economic predictions already have produced any number of cheery “outlook” pieces in this still-new year. So what do they think they see that most economists are missing, amid their celebrations of booming GDP and quiescent inflation? Deflation, of course. I gathered them into a conference call last week, and challenged them to worry me. " They did a pretty good job."