Greenspan
Although he panned Clinton's stock plan, I'm not sure if I understand Greenspan's logic. The market has averaged $13 billion a month going into the markets since the October 87 crash - and that's an average, the actual number has climbed every month since then, hitting probably $30+ billion this month. The $600 billion over 15 years is only worth about another $40 billion a year. I appreciate his concern that channeling those billions into the market could eventually lower productivity (money could go to less efficient industries rather than let market forces play), and more importantly that the board set up to manage it wouldn't be subject to political influences. However, we are only talking about $3-4 billion a month, and the 'random-walk' theorists certainly would say it won't make any difference.
So lets assume they do something different now in concert with that infusion of money. Lets say they allow greater deductions for child care, improved (rather than continually reducing benefits), more educational assistance, and most importantly, allowing more deductions for Research and Development to allow the companies to grow and improve. The one thing the 80's taught us was that productivity , valuation and sustainable growth occurred when businesses were incentivized to be efficient, modern, and well trained/staffed/ motivate.
just a thought.
lastshadow |
