What's going on in Asia is nothing short of a contagion of awesome, profound effect . . . The speed and the ferocity of the crisis as it cascaded through Asia and beyond is mind-boggling. It has hit Asian economies like a heart attack, utterly incapacitating countries otherwise endowed with strong physical constitutions. Things will stabilize eventually--they always do--but the workout period will be far more protracted and difficult for world markets than, say, the Mexican crisis of two years ago.
David Hale of Kemper in "This is Different" from Barron's (12/22/97) I think the chances of a 1930s-style deflation are trivial. You can only have that kind of deflation if you have a bad monetary policy. Deflation is the easiest thing in the world to avoid; you just print more money.
Milton Friedman in "Milton Friedman at 85" from Forbes (12/29/97) Don't count on the United States for surprises. The real surprises will be happening outside the United States . . . the U.S. is like a supertanker: It may not be the most exciting speedboat in the harbor, but it's going to get us where we're going.
Abby Joseph Cohen in "Rational Exuberance" from Worth Investment Outlook 1998.
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