The Justa & Lars Honors Bob Brinker Investment Club Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Justa Werkenstiff who wrote (7096)	7/23/1999 10:15:00 PM
From: JF Quinnelly	Read Replies (1) of 15132

A rapidly rising or a falling general price level would confound market signals and place strains on the system that ultimately may throttle economic expansion. (My comment: So Greenspan wants a slow, orderly correction?) I don't think he's talking about stock prices in this section, the 'general price level' usually means the inflation rate, and 'economic expansion' would be GDP growth of the real economy. Later on he is definitely discussing stocks, and it sounds to me like he is saying the Fed will try to pick up the pieces after we investors have blown up the market: The danger is that in these circumstances, an unwarranted, perhaps euphoric, extension of recent developments can drive equity prices to levels that are unsupportable even if risks in the future become relatively small. Such straying above fundamentals could create problems for our economy when the inevitable adjustment occurs. It is the job of economic policymakers to mitigate the fallout when it occurs and, hopefully, ease the transition to the next expansion.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next