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

To: pater tenebrarum who wrote (68032)	9/22/1999 12:55:00 PM
From: Mike M2	Read Replies (3) \| Respond to of 132070

Heinz, it is unbelievable. I was at Tice's bubble symposium in NYC yesterday. Larry Lindsey was among the speakers -he sounded more like a politician than a banker. He referred to AG's remarks that for Central Bankers to act on the perception of a market bubble requires the central banks judgement to be better than the judgement of millions of investors if this is so why bother with central bankers? He also discussed the intense fire the Fed came under after the " irrational exuberance " remark - ( the following are my thoughts) I suppose that the criticism had a greater impact than many believe . It seems the Fed is independant as long as it does what its bosses want. Lindsay also referred to the productivity miracle which many of us know is a mirage. The Q& A session was rather quick - I wish I had the chance to ask him to comment of the statistical distortion to GDP and productivity due to hedonic pricing . Henry Kaufman thought the Fed had missed its chance to contain the bubble and I was under the impression he thought is was risky to attempt to prick it now I say better late than never the longer we wait the greater the imblances. The bigger the boom the bigger the bust - and the tougher the tough love -g- Frank Veneroso mentioned that he would have an analysis of Robert Gordon's ( Northwestern Univesity) study confirming that the productivity miracle was a mirage. Look for it at his website in a few days. Unfortunately, Congressman Ron Paul had a death in the family and was not able to attend. My condolences to the congressman and his family. He seems to be one of the few people in government who have a clue. I was disappointed but not surprised that Dr. Lindsey did not express more concern about the bubble. Mike