Ed Yardeni
Ed Yardeni
people serious
These people could be in some serious trouble.
bizarre concerned gets goes market mood patch people soft worse
The market goes through these bizarre mood swings. All of a sudden, people are concerned that we're in a soft patch and that it may get worse before it gets better.
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.
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.
bigger bubble coming financing innovative lending mortgage places rather sorts telling
The bigger bubble is actually in the financing of homes. Mortgage lenders have loosened their lending standards. Rather than telling a lot of would-be buyers, particularly in places like California, that they don't qualify, they're coming up with all sorts of so-called innovative alternative financing.
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.
bigger bubble financing
The bigger bubble is actually in the financing of homes.