Ed Yardeni
Ed Yardeni
disaster global local
If Y2K is a disaster it will be a global one, not a local one,
assets commodity converted extent financial funds hard
What is really new in the commodity world is the extent to which hard commodities have been converted to financial assets through exchange-traded funds and hedge funds.
beginning earnings recover
Earnings will recover and valuation multiples, which got crushed, will get back to where they were at the beginning of the year,
areas choke fact government points produce year
the government is one of the choke points in the year 2000 problem. It's one of the areas where we could have disruptions that could in fact produce a recession.
earth life mean planet severe year
There could be a severe recession. That doesn't mean there won't be life on the planet Earth in the year 2000, 2001 and beyond.
actual businesses creating inventory money sort turning
The actual end users, the businesses that actually need these commodities, are discovering that they are making more money by accumulating inventory than turning it into products. It's sort of creating a panic-buying situation, scrambling to hoard.
depressing ease economic fed federal folks funds high next plenty raise rate room seriously short sure time
I think the folks at the Fed would like to raise the federal funds rate as high as they can short of seriously depressing economic growth. They want to make sure they have plenty of room to ease next time they have to do so.
core increase inflation means percent rate seen stayed tremendous
For two years, we've seen this tremendous increase in prices, yet the core inflation rate has stayed at 2.3 percent or less, and the only explanation for that is globalization means inflation is contained.
bank central conclude income investors raise rates tends time
When fixed-income investors conclude that the central bank isn't going to raise rates any time soon, ... there tends to be a convergence of rates.
adds good surprises
The surprises should be on the upside. It all adds up to very good fourth-quarter numbers.
companies difficult inflation keeps raise
Because of competitive pressures, it is difficult to raise prices. Companies have to raise their productivity, which keeps inflation down.
people serious
These people could be in some serious trouble.
again fed raising rates stopped
The Fed stopped raising rates in 1995 and I think they will do so again in 2006.
again bad followed good percent raising rates simply whenever
The Fed's going to be raising rates because it realizes that good times will be followed by bad times, ... To have a rate of one percent whenever we have bad times again is simply not prudent.