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

To: IceShark who wrote (75368)	2/7/2000 3:02:00 PM
From: Mike McFarland	Read Replies (1) \| Respond to of 132070

<machine seizes a bearing> In his speeches, Greenspan seems mainly concerned with wage inflation. I have not even had econ 101, but my guess is that what seizes things up is the wealth effect allowing the most productive members of the work force the ability to drop out, retire early, etc. But I don't feel really good about my theory--so many folks just turn around and start their fantasy business etc. Take me for instance, suppose I load the boat on one stock and get lucky (not likey, but nearly happened once, ooof) I'd be out of the Weather Bureau so fast and starting my own company it would make my head spin. So the wealth effect can lead to an increase in productivity, hmmm, now I'm going around in circles. Consumer spending: I wonder if that part of the equation hasn't been overstated. The average consumer is always tapped out, he spends all he has on cigs, booze, and a new pickup every five years. I think that is pretty constant, how do you slow that consumption down? And yet we know that there are economic cycles, with the Fed ever pretending that they run the show--but I think it hasn't an awful lot to do with the consumer.

To: IceShark who wrote (75368)	2/7/2000 3:18:00 PM
From: Nadine Carroll	Read Replies (1) \| Respond to of 132070

Most spending is consumer driven, towards 70 % as I recall. The wealth effect runs rampant and credit is pretty cheap. I have credit card offers on cards that used to charge 19%, giving me checks to pay off other balances for a lifetime fixed rate of 6.9%, unsecured. I dug into these a bit and found out I really don't have to pay off another credit card balance .... I can actually have them put it in my checking account! Do whatever I want with it. One even told me to take it and invest in the stock market! -g- IceShark, On this note, I just received, not just another credit card offer, but the offer for a card with a $5000 advance, with the check enclosed and written out to me. I've gotten plenty of credit card offers before, but this was a first. Nadine