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To: Brian Moore who wrote (15756)	1/13/2000 3:02:00 PM
From: Brian Moore	Read Replies (1) \| Respond to of 19700

More from Greenspan on tech, and the effects of his comments on the markets: InformationWeek January 28, 1999 Federal Reserve Chairman Alan Greenspan told the U.S. Senate Budget Committee on Thursday that there was more than hype to the meteoric values of Internet stocks. "You wouldn't get the hype working if there weren't something fundamentally potentially sound under it," Greenspan said in response to a question from Sen. Ron Wyden (D-Ore.) during a discussion about Social Security. Investors scrutinize the Fed chairman's comments, which can move markets. The stock market plunged in 1996 following his warning of "irrational exuberance" in stock valuations. "The size [of that potential market] is so huge that you have these pie-in-the-sky potentials for a lot of different vehicles," Greenspan said. The lottery principle is at work with Internet stocks, many of which have out-of-this-world stock valuations before they even turn a profit. "Of course, there's some hype," he said, adding that the potential payoff was high. "Some small companies whose stock has gone through the roof may justify higher prices. But the vast majority are almost sure to fail," he said. Greenspan has said that technology has dramatically changed how Americans live and work and its effect on the economy is significant but hard to measure by traditional methods. His remarks supported a high-flying day on Wall Street, with the Nasdaq ending up 70.20 to a record high 2477.34.