As least one member of the panel raised alarms about China. If you believe that economy grew 7.8 percent, shame on you. We have an economy where the rural incomes are declining, where prices are declining, where they have price controls to keep prices up, where profits are declining, where electricity consumption is declining. This is not an economy that is growing very well. There were no easy answers among the panel on whether the U.S. stock market is in for a major correction soon.
Some analysts believe the market is grossly undervalued.
But they all expressed confidence in the U.S. economy, despite a growing trade deficit. Many expect this fall-out from the economic weakness in Asia, and the growing crisis in Latin America, will slow U.S. economic growth to less than 2 percent in 1999.