To: long-gone who wrote (7575 ) 9/1/1999 5:14:00 PM From: Hawkmoon Read Replies (2) | Respond to of 81234
Let me say more, not all commodities really hoping, might just be seeing a "retern to the norm" rather than the extreme. Perhaps just reflation not INflation. Would this not mean a "pickers" market - where some do OK, instead of a go & blow bull - where all commodities rock & roll? Richard, You're really beginning to impress me... seriously. That's a very astute comment that many choose to ignore, including AG (I think). Look at the oil market, agricultural, real estate market (at least here in DC), and some of the other commodity indices. Higher prices are certainly warranted in certain areas, but Greenjeans is locked into this frettin' mode about price inflation. Well... golly gee... if prices never inflated then companies couldn't increase earnings. They create a demand for a product, and as demand increases, the price oftentimes goes up until production efficiencies are introduced. It is uncontrolled inflation that creates the real concerns. Not workers showing greater productivity and being properly rewarded financially for that productivity. IMO, how they resolve the stock market "bubble" is to increase margin rates and requirements, pure and simple. They helped to create this bubble by directing so much investor money into the mutual fund industry, where these whiz kid managers play follow the leaders and permit the broader market to languish. This has created INCREDIBLE distortion of market forces, where 10% of the SPX prospers while the other 90% lanquishes from underattention. And the small cap sectors, where entrepreneurialship and innovation are derived, are almost completely ignored by the institutions because they are simply too illiquid to handle the inflows of all of that 401K money. It won't change until congress starts to create the incentives for individual stock ownership over the long term, such as negating capital gains for holders of individual stocks for longer than 2-3 years. Sorry to ramble off the main point, but some of the things that Greenspan and the market are worrying about are completely due to the systemic monster they have permitted to be created. Regards, Ron