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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (67259)	9/4/1999 10:25:00 PM
From: Les H	Respond to of 132070

Joe B. "Fed's on hold for rest of year. If market should fall, Fed will be able to rescue the market." gruntal.com

To: Les H who wrote (67259)	9/5/1999 6:21:00 PM
From: Simba	Read Replies (2) \| Respond to of 132070

Les, Mike: From the eonomist article "Bubble Trouble" it seems that Alan Greenspin has clearly indicated that he will cut interest rates if market falls "discontinuously" than in a slow and continuous fashion and will not increase rates based on stock market values however high since the prices reached their peak "gradually". In his opinion the absolute values are immaterial but only how we get there. Does that mean if there is a 73 type bear market he would not mind ;-) i.e he won't cut rates and inflate it. Also I agree with Mr. Goodhart in the article who says that asset price inflation should be rolled into CPI and not wait till it overflows and "shows up" in CPI before any action. I had asked this before but can someone tell me if rising house prices are being factored into CPI numbers and if so how ? According to Paul Kasriel of Northern Trust, housing component of CPI is 39 % but is that just explicit rents paid by renters ? How is house price increase factored in there ? I kind of think that if it is only rents and mortgages then no wonder CPI shows no inflation on housing since rents and mortgages can be flat or lower in a low interest rate environment camouflaging a fast increse in house prices because more renters are moving out and buying houses at larger prices but at lower interest rates. Can someone comment on the above ? Mike, I think I should have gone with my idea of shorting BBY and CC that I told you earlier. They seem to be taking a breather. As to AMAT I covered my short at a small loss, it still seems to have some sterngth left, maybe one more up wave into x-mas and then a large collapse next year when Morgan misses earnings once again.