The following article reminds me somehow of the Titanic, 'all ahead full' no worries we are unsinkable! Hay what are those big shinny white things up ahead? Oh dont worry about those, there just iceburgs, we are unsinkable, 'full speed ahead'

Re Timothy J Wilbur

Correction on Wall St looms: Warburton From AAP [The Australian] 26nov98

RESERVE Bank board member Dick Warburton expects a correction on Wall Street, possibly early in the new year, citing the "bizarre situation" of a slowing US economy while the Dow Jones continues to climb.

"I believe that it is now so different  the equity optimism versus the economic indicator movements  that one says there's going to have to be a correction," he said.

"Now one always wonders if that correction is a crash or not.

"At some stage, I believe, there's going to have to be a correction again because gravity eventually takes hold," said Mr Warburton.

"I would suggest that because profits are slowing in the US . . . eventually the equity market will say 'hey this has got too heated' . . . you know that it defies gravity."

Mr Warburton stressed he did not think the US share market would experience a crash because the underlying strength of the economy was still "very good".

"It's a correction, not crash."

"My guess . . . is early next year that we'll see a correction, but really who knows? If I was a punter in the equities market I'd be probably be easing up and looking for a bit of cash at the end of this year."

Mr Warburton said he was optimistic that the local economy would experience a soft landing next year due to the Asian crisis.

He said Australia had enjoyed good news over the past six months while its last quarterly growth performance was around 4 per cent growth.

"It's still way better than people expected. I see that drifting back to probably 2 per cent next year, but even 2 per cent is good by most OECD standards."

He said Australia's economic fundamentals were good, with low inflation and relatively low interest rates.

"The only fundamental not as good is unemployment . . . at around 8 per cent it is something I'd obviously prefer to see down," he said. "But that's really the only poor indicator in Australia at the moment.

Mr Warburton said Japan, which was important to the health of the Asia region, had "bumbled to the bottom and will start bumbling upwards".

"It remains weak but there are encouraging developments," he said.

"I am optimistic enough to say that even though the Asian crisis is going to cause us, this economy, to slow down next year, it will lead us to a soft landing rather than a harsh landing or a recession."

In a speech yesterday to the Australian Institute of Company Directors, of which he is national president, Mr Warburton was critical of the political scene, saying it was becoming ungovernable.

All but one government  at federal and State level  faced either an antagonistic upper house or had found themselves ruling with a minority government.

"I just find it almost outrageous that those not elected to put the laws into parliament have one great ability to block it," he said.

Mr Warburton said the Senate had moved way beyond its role as a house of review. "It is now block whatever you can."

-- Timothy J Wilbur (timkaz@nor.com.au), November 26, 1998

Answers

Timmy, you spelled things wrong.

-- teacher (no@aol.com), November 27, 1998.

Spelled words "incorrectly", thank you very much.

-- La Reine (grammarqueen@ok.com), November 27, 1998.

No he was saving pixels - just concatenates "things" with "sinks" - But I like his msg. Notice he recommending getting out of the market early next year.....Hmmmn. Where have we heard that before?

-- Robert A. Cook, P.E. (Kennesaw, GA) (cook.r@csaatl.com), November 27, 1998.

Oooooh! A Grammar queen. I think I like that. Actually, what "teacher" {who is actually a consumer- yea, I know it was you! :-) } was pointing out, was the incorrect spelling of the word "thing" in the subject line.

-- Gayla Dunbar (privacy@please.com), November 27, 1998.

Dag gone Gayla, you got the ESP or what? Okay you caught me. Guess I can fool some of the people some of the time, but never Gayla, you be a teacher (real one ) right?

BTW, ROFL

-- consumer (private@aol.com), November 27, 1998.

Consumer, that's not the teacher part of me. It's the mother of two teenagers part! :-) Glad you're such a good sport!!

-- Gayla Dunbar (privacy@please.com), November 27, 1998.

Gayla hasn't caught me yet, posting as...?

-- Uncle Deedah (oncebitten@twiceshy.com), November 28, 1998.

Uncle Deedah, I'm shocked! :-) I didn't know you posted under anonymous names. Although, there was this one post by Alive in 2001 that sounded a lot like you..... And come to think of it, if Run Way Cat hadn't said he was from the West.....

-- Gayla Dunbar (privacy@please.com), November 28, 1998.

Uncle, where is Hardliner anyway? We miss him.

-- Diane J. Squire (sacredspaces@yahoo.com), November 28, 1998.

I don't do it often. BTW "Cold, colder, colder yet, no, you're colder.

-- Uncle Deedah (oncebitten@twiceshy.com), November 28, 1998.

Darned thing! I wasn't finished.

"colder, but here is one single solitary clue: Gayla, you thought my alter-ego was "rude".

-- Uncle Deedah (oncebitten@twiceshy.com), November 28, 1998.

Uncle Deedah, I can't believe it! OK, maybe it was a LITTLE funny, but proof that you had been spending WAY too much time with TTF! :-)

-- Gayla Dunbar (privacy@please.com), November 28, 1998.