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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 243.82-2.6%11:23 AM EST
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To: Rob S. who wrote (11114)7/21/1998 7:39:00 PM
From: umbro  Read Replies (1) of 164684
 
Al Greenspan's Humphrey-Hawkins testimony can be found here:
bog.frb.fed.us

This is the closest quote that I could find, that related
to high stock prices:


To a considerable extent, investors seem to be expecting that low inflation and stronger
productivity growth will allow the extraordinary growth of profits to be extended into the
distant future. Indeed, expectations of earnings growth over the longer term have been
undergoing continual upward revision by security analysts since early 1995. These rising
expectations have, in turn, driven stock prices sharply higher and credit spreads lower,
perhaps in both cases to levels that will be difficult to sustain unless the virtuous cycle
continues. In any event, primarily because of the rise in stock prices, about $12-1/2
trillion has been added to the value of household assets since the end of 1994. Probably
only a few percent of these largely unrealized capital gains have been transformed into the
purchase of goods and services in consumer markets. But that increment to spending,
combined with the sharp increase in equipment investment, which has stemmed from the
low cost of both equity and debt relative to expected profits on capital, has been
instrumental in propelling the economy forward.
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