Question Details	Asked By	Asked On
The Current Economic Boom	Ccl471	05/12/05
During the last recession, I asked a good friend of mine who was formerly a stock broker and is a successful investor in the stock market, what the next economic boom was going to look like. I wanted to know if it would be have as rapid a growth rate as the last boom. He said that the next boom, which is the one we are in now, would have gradual growth. Is that how our current boom has been, and will be until the next recession? Many thanks, C.L.
Clarification/Follow-up by tomder55 on 05/13/05 2:33 am: Here is another article with optimistic predictions regarding securities .
Answered By		Answered On
tomder55		05/12/05
depends on who you listen to . Larry Kudlow who is very bullish says the adjustment period we've gone through the last couple of months is over and that the economy is full speed ahead [with the one caveat that the Federal Gvt. has got to begin to control spending *].Whether that translates into market gains remains to be seen . I do not like the extreme daily fluctuations lately but long term you almost can't lose. *Money is sounder, tax rates are lower, productivity and profits are much higher, and world trade is more open. Today’s technology-streamlined and deregulated economy is not inflation-prone. And the Federal Reserve will cease its policy-tightening moves sooner than most folks expect. So long as the Bush administration and Congress control federal spending, keep tax rates low, and avoid the growth-slowing pitfalls of trade protectionism, non-inflationary prosperity can continue for years to come. Economic policies matter, and right now they are pro-growth. And so long as the Bush Republicans nuke the filibuster-happy Democrats, the president’s pro-growth reform agenda — of more investor-class ownership and greater tax-freedom to save — will expand the economy’s potential to grow even more in the years ahead.

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