Companies have to learn to live with keeping their costs down. They're not going to get pricing power not in our lifetime, I'm afraid. The world is just much too competitive.

Greenspan's testimony to Congress is always an event and probably more so this time than usual. We are looking at the Fed with a bias to tightening and we have to get some warning of whether he is going to act on that or not. So what I am looking for is a clear signal.

The markets are clearly disappointed.

This [report] gives the Fed total latitude to do whatever they think is fitting.

The price we have to pay for all this is someplace. Early in the century, we're going to see a real good old-fashioned panic of the kind we haven't seen in a long time.

The Fed ought to like it [the producer price report], and personally I'm breathing a huge sigh of relief.