Apparently, I visited my late mother in November of 1998. While cleaning out some of her possessions, I discovered a copy of my favorite magazine, The Economist, dated November 21st, 1998 that I must have left there. Taking a trip down Memory Lane, I was bemused by the discussion of interest rates on page 75. Here is a sampling:
"The Chairman of the Federal Reserve may have good reason to believe that America's economy is on the edge of a cliff. He may have inside knowledge of the risks of an imminent financial bust . . . But big doubts remain. America's economy is still growing briskly. Labor markets remain tight. Money-supply growth is bounding ahead. Moreover, financial worries seem to have eased . . . But America's economy looks set to slow sharply next year. GDP growth may be only 1.5% in 1999, down from 3.5% this year . . . Moreover, things could conceivably turn out worse. Consumer spending could fall if Americans start saving again -- as they must some day. Companies may cut back sharply on investment . . . and exports would be hit if the international outlook worsens . . . but the more share prices are become overvalued, the more they will eventually have to fall . . ."
This sounds like it could have been written today, doesn't it?
. . . the more they stay the same?
"The Chairman of the Federal Reserve may have good reason to believe that America's economy is on the edge of a cliff. He may have inside knowledge of the risks of an imminent financial bust . . . But big doubts remain. America's economy is still growing briskly. Labor markets remain tight. Money-supply growth is bounding ahead. Moreover, financial worries seem to have eased . . . But America's economy looks set to slow sharply next year. GDP growth may be only 1.5% in 1999, down from 3.5% this year . . . Moreover, things could conceivably turn out worse. Consumer spending could fall if Americans start saving again -- as they must some day. Companies may cut back sharply on investment . . . and exports would be hit if the international outlook worsens . . . but the more share prices are become overvalued, the more they will eventually have to fall . . ."
This sounds like it could have been written today, doesn't it?
. . . the more they stay the same?
