Looks like its over,' seems to be the collective response concerning the continuance of our long economic boom. Then last Tuesday, investors took a roller-coaster ride unlike one we had witnessed in quite a while. Well, I firmly believe that it will take more than a fortnight of market volatility to signal the end of the good times. Among the causes of past economic downturns have been high inflation, dumb government policy decisions and major shocks to the system. All seem unlikely now.
Inflation remains low although it has bottomed.
The Federal Reserve deserves generally high marks for managing the economy. Oil prices are less critical than when they skyrocketed in the 1970s. Other factors that have fueled our economy for so long are still in place. In addition to low inflation, they include technological advances, rising productivity, improved inventory management and a global shift toward capitalism and free markets. Plus, the recovery's moderate growth rate has helped keep excesses in check.