The Michigan Daily-Saturday, October 25, 1980-Page 3 AUT O AND HO USING IND US TRIES ON UPS WING Prof cites economic recovery Hymans Sinai . .., predicts record profits ... cautions about inflation Study says aspirin may block interferon By BETH ALLEN and MARYEM RAFANI The 1980 recession has ended and the U.S. economy has moved into a recovery period, two leading economists yesterday told ap- proximately 60 alumni involved in the banking industry. University Economics Prof. Saul Hymans and Allen Sinai, vice president of Data Resources, Inc., in Lexington, Mass., and a Business School graduate, predicted a recovery during the next six months for most major industries, such as automobiles and housing. Corporations, Hymans said, will again experience "record high profits byrtheendof 1981." SINAI CAUTIONED, however, that the automobile inidustry's'recovery could be hampered by high inflation, tighter credit, and higher interest rates, which he called "the number one risk" to the state of the economic recovery. "We have the interest rates coming back to haunt those same businesses" that are experiencing recovery now, Sinai said. He added that consumer spending could slow any improvements in the auto industry, if American automakers fail to compete effectively with their foreign counterparts. HYMANS SAID the housing market is one sector which will show some im- provement. But he warned that the in- dustry will have a difficult time over- coming the serious losses it has suf- fered during the past year. He speculated it would take approximately one and one-half years for the industry to straighten itself out. One of the tighter areas in the housing market, said Hymans, will be home mortgage rates. He said rates in this area are likely to remain "fairly high" and could increase. Hymans, who is also co-director of the Research Seminar in Quantitative Economics, hesitated to offer predic- tions for the Michigan economy, but said it will lag behind the nation's by about six months. HE STRESSED that the state will receive "less than its traditional share" of a national recovery because of the recent rise in foreign competition. The professor stressed that his predictions for a return to a healthy economy hinged upon future actions by the Federal Reserve Board, and possible implementation of one of the federal tax-cutting plans. He noted that while the Fed's "wild gyrations" last year did not cause the recession, the board's credit-tightening activities helped worsen it. He predicted that the board will, probably "keep monetary policy fairly tight," but any extreme measure could have a detrimental effect on the economy's improvement. HYMANS ALSO stated that personal and business taxes would be cut by ap- proximately $35 billion, if one of the tax cuts proposed by the presidential can- didates is implemented, but he said the effects of the cut will not show up until the second half of 1981. Sinai, however, called the tax proposals "inflationary" and said they will eventually create large deficits in the budget. "Carter's proposal is more 'budget-busted' than Reagan's," Sinai said. He explained that the plan could cause a larger deficit than Reagan's during the first year of its implemen- tation, but stressed that by 1985, Reagan's plan-which provides for a ten percent cut in personal income taxes and faster business write- offs-will cause a greater deficit. Sinai also reminded his audience that the rest of the world, especially. Western Europe, is also in a recession. While he said this could threaten U.S. exports, it could also mean other coun- tries will lower their interest rates, thereby strengthening the U.S. dollar. Hymans also did not miss the oppor- tunity to slam Proposal D-the Tisch tax-cut plan-on the November 4 ballot. Welcome to Alpha Epsilon Phi NEW YORK (AP)-Aspirin and many prescription arthritis drugs ap- parently can block the effect of inter- feron, a finding that poses questions for research into the potent natural anti- Viral substance. Scientists at Duke University and Wellcome Research Laboratories have discovered that aspirin and the ar- thritis drugs reduce the extent to which interferon protects cells against viruses, provided the drugs are added before interferon has a chance to go to work. THE SCIENTISTS stressed their work was done in mouse cells growing in an artificial medium, and there was no guarantee the same thing would hapen to live animals, much less human beings. Nevertheless, if confirmed, the effect of aspiring on interferon might be im- portant for the current trials of inter- feron in human cancer patients some of whom may have taken aspirin without their doctors' knowledge. Myrna Baskin Susan Broser Beth Ecanow Teddi Eisen Leslie Feldman Hyla Fruman Betsy Gallop Sharon Gandal Pamela Gillery Gilda Hauser Sherri Herman Jill Hittleman Laurie Koff Amy Korman Lauren Lerch Amy Lipton Betsy Moss Andrea Muchin Susan Roseth Ann Sachar Julie Salzman Lisa Savorick Lillian Seidman Robin Sherman Caroline Sirlin Lois Solomon Lori Starman Judy Weiss Carol Weissman Nancy Yawitz With love, your AEO Sisters 'di L vI New dorm windows ~TER uLhe G target of c( (Continued from Page 1) Maintenance Paul Bowyer. The windows in Alice Lloyd currently are being replaced, according to Bowyer. Stockwell, West Quad, East Quad, Mosher-Jordan, and Mary Markley, in that order, are the dorms which will get the windows next. The $2.6 million project was financed by a loan from the Department of Housing and Urban Development and should pay for itself in energy savings in seven years, Bowyer said. THE WINDOWS are two panes of one-quarter-inch thermal-pane glass with a vacuum seal in between to fur- ther insulate one piece of glass from the other, Bowyer said. George SanFacon, the University Energy Manager, said the windows will save five to 12 percent of the total heating bill, depending on the building. The savings result because the heat escape through the neiv windows is reduced, so less steam is needed to heat each room. Some residents, though, are not hap- py with the new windows. The Stock- well council has set up a committee to publicize their disdain for what council Vice-President Amy Falor called "irreparable damage to the dorm." THE UNHAPPINESS stems not from the idea of energy-saving windows, but from the style of the new window chosen for the dormitory, Falor said. "We want a window more in the style of the building," she said. The committee, headed by Stockwell residents Debbie Gorak and Joanne Jurmu, has circulated a petition con- demning the project. "We have collec- ted 292 signatures in two days," Falor said. At the Stockwell council meeting Thursday night, many residents of the dorm voiced their concern for what whey called an unfair and poorly- managed University project. THE RESIDENTS were not contac- ted by the Housing Office in regards to dorm renovation, said Crystal Glass, )mplaints President of the House Council. She said she hopes the Housing Office will listen to the student organization, but if not, "they don't know what they are up against." The last major confrontation Hill area dorm residents had with the housing administration was when University planners proposed a com- mon dining complex for several of the Hill dorms. The students took the issue to the Regents, who subsequently killed the administration's plan to the dismay of housing officials. Mosher-Jordan has a similar com- mittee headed by Bill Wolfson and Michele McDonald. Their concerns parallel those voiced by Stockwell residents and the committees are trying to combine efforts. "We just don't want the dorm ruined for us and the students who come after us,'" McDonald said. ASSOCIATE Housing Director Norm Sunstad said it was the consensus of his office that the character of the building will actually be enhanced by the ap- pearance of the new windows, in ad- dition to their energy efficiency. Another advantage of the new win- dows, Bowyer said, is their increased resistance to breakage. Because the impact is spread out over a wider area than the small panes, he said, the odds are 100-to-1 against breakage. "Although," he admitted, "a big-league pitcher would have a chance of breaking one."~ But if the window does break, the replacement cost will be at least $100, five times the current $20 rate. Stockwell is presently scheduled to have windows replaced starting Oc- tober 30. "We hope to have all nine dorms finished by January 1," Bowyer said. Bowyer added that ESCOW, the com- pany contracted to do the rest of the dorms, has had supply problems and delayed the starting date from July, but he said the target completion date of January 1 still stands. MICHIGAN THEATRE OLD-FASHIONED Entertainment/ Movie Palace/Pricesi f V IAii.-Il FRI, OCT 31, HALLOWEEN Vaudeville '81 Shows At All Three Fun-Packed Shows HANK MOOREHOUSE, Magician, GREG YASSICK, Organist 6:30 p.m. Family Show Illusionist y "FIVE THOUSAND FINGERS OF DR. T." (1953) Dr. Seuss wrote the lyrics for this movie. 9:15, 11:30 p.m. Adult Shows "THE NIGHT OF THE HUNTER" (1965) Charles Laughton directing acting greats Robert Mitchum, Shelley Winters, and Lillian Gish, in exquisite visual menace. Peter Graves, f r' ' 1 / r y l I , Kr. fedtfuria /hl 41-rice ~jraft SAnn Arbors 3e t o urritc for 1r/.SC and Single tickets: $4.00 each** Series tickets: Any Number of Tickets in Any Combination for Six Seasonal Vaudeville'81 Shows-$7.75 for two tickets, $15.50 for five tickets, $33.00 for twelve tickets, for example** i Sun, Nov 2, 7:30 p.m., and Mon. Nov 3, 4:15, 6:00, 7:45 p.m. "KEY LARGO" Academy Award Winner with Humphrey Bogart and Lauren Bacall -Substantially reduced prices for Senior Citizens, Students, Members of SEMCA, Members of MCTF 603 East Liberty, Downtown Ann Arbor Box Office Open Mon-Sat 2-6 p.m. - 668-8480 611 CHRH * Progressive Blues Band ~ THE BEAR ESSENTIALS, MISS J. These cub scouts have located all your accessories! PREPPY koala bear-ing in mind the classic accents: Slender neck-ties, /" wide, 6 for $4. Variety of pins, many ceramic or enamel, $4 to $7. 1" wide stretch fabric belt toned in natural, 7.50 Cotton corduroy Bermuda bag in taupe, 10x101/2", $30. DRESSY panda bear-ing a charmed life with these: 3%" wide adjustable bow-ties, solids or prints, $5. Gleamy pins in gold or silver tone metal, $4 to $7. %" stretch metal belts, here golden with heart, $7. f3! > r,.. ' 1 , . " ,,,, . <. r. . .. 2 > 1j:: ; . . HAPPENINGS FILMS AAFC-The Wild-Child, 7, 10:20 p.m., MLB 3; Every Man for Himself and God Against All, 8:30 p.m., MLB 3; Every Which Way But Loose, 7, 9 p.m., MLB 4. Cinema Guild-The Maltese Falcon, 7,9:05 p.m., Lorch Hall Aud. Cinema II-King Creole, 7 p.m.; Jailhouse Rock, 9 p.m., Aud. A, Angell. Mediatrics-What's Up Doc?, 7:30, 9:30 p.m., Nat. Sci. Aud. PERFORMANCES School of Music-Piano accompanying recital, John Walter, 8 p.m., Recital Hall. Theater and Drama-"Spring Awakening," 8p.m., Power Center. Musical Society-San Francisco Symphony, Edo deWaart, Cond., 8:30 p.m., Hill. Ark-Songs from Australia, Priscilla Herdman, 9 p.m., 1421 Hill. SPEAKERS ICLE-Workshop, Joseph Sax, "Environmental Protection Law in Michigan," 9-11:45 a.m., Hutchins Hall. MISCELLANEOUS UAC-Homecoming parade, 8:15 a.m., begins on Catherine St. between Fourth and N..Main. Mudbowl Game-Phi Delta Theta vs. Sigma Alpha Epsilon, 10 a.m., corner of S. University and Washtenaw. Hillel-Shabbat services and lunch, 9:30 a.m., 1429 Hill. Ann Arbor Tax Dissidents and the Southeastern Michigan New Call to Peacemaking-workshop on conscientious objection to war taxes, 12:30. ' .. . ... . Jacobson's I F SPORTY brown bear-er of winners: More pins, bright wood, $4 to $7. Narrow 1/2" brown leather belt, $6. Navy nylon satchel with a zipper top, 12x 15%", $23 And: the three bears. Of iN::-