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To: BGR who wrote (66145)	10/4/1999 12:15:00 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 86076

BGR, you are of course right, but the Fed tends to consider asset prices when they fall hard, so why not when they go up? this is what creates the moral hazard we have talked about on a previous occasion. btw, ALL major asset bubbles in the past have developed against a backdrop of tame consumer price inflation and vast productivity gains. and yet, they have ultimately all burst and created major long term economic problems thereafter. so i have to agree with the Economist that it would be better to keep them from forming in the first place.