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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (12037)	2/20/2000 11:20:00 AM
From: Sam	Respond to of 15132

MGJ, << Perhaps not as Federal Reserve Chairman but in another life he owned his own economic forecasting firm and his stock market forecasts were sometimes lacking.>> Thanks for pointing this out, I was thinking especially of his fairly often quoted bullish comments just before the market tanked in '74. His forecasting lapses have been frequently commented upon in recent years. Not that I come down on him hard for that, on the contrary; if you make a lot of forecasts, you get a lot of them wrong. Rather, it is that I don't think he should be trying to set up a target for the stock price growth, especially a target like growth in personal income. This is surely as absurd as some of the equity valuations that are out there today. If he wants to reign in some of the highly speculative prices out there, make it harder to do with higher margin rates, which more directly affects the stock market, and less directly affects the real economy (though as I think it was Justa who said, people use margin for reason that just buying stock). This was my main point, which has been said by both me and others on this thread before. I'll refrain from repeating it again.