The Long-Expected Transition Will Finally Arrive In 2007

摘要

Every year, we need to look ahead and make plans for the coming year. Some years are easier than others. This is one of those years when nothing is easy. There are so many conflicting signals flying around that on one hand business (namely machinery) looks like it could easily keep flourishing for another couple of years without hesitation. On the other hand, warnings of problems pop up related to the whole business cycle that tell you that there are going to be some changes and that they are not on the upside. A quick look at where we have been since our last forecast shows that economically, the Feds have been tightening interest rates ever so diligently for the past two years or so, which you know will eventually cause some problems on the downside. Variable interest rates on home mortgages have skyrocketed and credit cards with variable interest rates on unpaid balances are getting a little sticky if one pays only a portion of the monthly bills.