Word: wenglowski
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
Some experts, though, argue that the level of consumer debt is not a major danger to the economy. Gary Wenglowski, chief economist for Goldman Sachs, a New York investment firm, notes that delinquency rates on consumer loans have not been rising dramatically. Says he: "This suggests that consumers are not having any problem servicing their growing debt...
Even if the Federal Reserve violates Volcker's commitment to tight monetary policy and pours out enough money to meet the borrowing demands of both Government and business, says Wenglowski, the eventual outcome could be, if anything, worse than the stagnation scenario. Interest rates would stay down temporarily, and production might grow rapidly and unemployment drop for a while. But then inflation would reignite, and sooner or later the Federal Reserve would have to crack down again to choke off the miniboom. That scenario would in effect mark a return to the dismal and overlapping inflation-recession cycles...
Wall Street economists generally feel that business looks much stronger now than a few months ago. Gary Wenglowski, director of economic research for the investment banking firm Goldman Sachs, previously predicted that the economy would dip in the first half of 1981. But now he foresees a "less severe slowdown that will not be deep enough or long enough to call a recession." Agrees Roger Birk, chairman of Merrill Lynch, the largest brokerage house: "This is not a recession year; it is a transition year...
Businesses are having slightly better success than consumers in the search for credit funds. Says Gary Wenglowski, chief economist of Goldman Sachs: "Money is still available for the major companies, although it is very costly." One way companies have kept flush with cash is by borrowing money abroad where interest rates are lower. IBM recently obtained $227 million worth of West German marks and Swiss francs at up to 14% less than it would have paid for the money domestically...
...Administration clearly runs the risk of raising expectations too high over what is likely to emerge from its policy review, economists both in and out of Government now increasingly expect to see at least some stiffer measures to limit the explosive and inflationary growth of credit. Says Gary Wenglowski, director of economic research for Wall Street's Goldman, Sachs investment firm: "I'd give odds of 60 to 40 that the Administration's new package will include credit controls...