All of a sudden, this mystery of strong growth and low inflation doesn't seem such a mystery any more. This is exactly what the new economy is all about.

We've moved further away from a rules-based system. We have a Greenspan standard, but we don't have any kind of a Fed standard.

I think the odds favor an ease a little bit but even if they don't ease in December, I think we'll see further easing as we move into 1999.

Business investment is on the rise, manufacturing activity is gaining momentum, and sustained job growth is just around the corner.

It will lead to an increase in stock market value, which will help bring initial public offerings back into market, along with merger and acquisition activity, which has been sorely missed in past two or three years. That added financial market activity comes along with a lot of real economic activity as well.

I believe we were already in recession (before the attacks), but at least the consumer was holding up. Now we are virtually guaranteed to see spending fall. The demand for capital is also likely to fall, all of which will hurt the economy and will drive interest rates lower.