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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: NickSE who wrote (83399)	1/13/2000 9:31:00 PM
From: MythMan	Read Replies (1) \| Respond to of 86076

It means shots all around for BadaBing patrons. meet ya there tomorrow @ noon? -g-

To: NickSE who wrote (83399)	1/13/2000 11:37:00 PM
From: Ken98	Read Replies (1) \| Respond to of 86076

Nick, I've read the speech now and all I can say is that he's been eating too many peanuts again: <<Indeed, our goal, in responding to the complexity of current economic forces, is to extend the expansion by containing its imbalances and avoiding the very recession that would complete a business cycle. >> Read: He really does believe that God stuff. The business cycle HAS been permanently repealed - you read it here. <<To be sure, increases in wages in excess of productivity growth may not be inflationary, and destructive of economic growth, if offset by decreases in other costs or declining profit margins. A protracted decline in margins, however, is a recipe for recession. Thus, if our objective of maximum sustainable economic growth is to be achieved...>> Read: Dept. of Labor had better keep the ovens working overtime and the good productivity #s coming. And reemphasizing the point that they view their job not as ensuring monetary integrity but perpetual levitation of the business cycle. <<If a trend cannot continue, it will stop. What will stop the wealth-induced excess of demand over productivity-expanded supply is largely developments in financial markets. That process is already well advanced. For the equity wealth effect to be contained, either expected future earnings must decline, or the discount factor applied to those earnings must rise.>> Read: He really is stupid. Al, its all about MO! MO! - do you really think anyone even knows WTF a discount factor really IS? Much less cares... <<Thus, the rise in real rates should be viewed as a quite natural consequence of the pressures of heavier demands for investment capital, driven by higher perceived returns associated with technological breakthroughs and supported by a central bank intent on defusing the imbalances that would undermine the expansion.>> Read: Don't have a clue what "defusing the imbalances..." means. Means he will order all of the high speed printers he needs to keep Al.com going? Seriously though, if you read it together with the previous para. "wealth-induced excess of demand over productivity-expanded supply" it could be read to mean that he wants to pop the bubble. But he tacitly admits that Al.com is what is perpetuating the expansion which he explicitly says he will preserve at all costs. Now I'm really confused...