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To: RocketMan who wrote (7237)	3/7/2000 8:46:00 PM
From: Jill	Read Replies (1) \| Respond to of 24042

I don't think he'll "destroy the economy" but I essentially agree w/ your take on him. I feel the economy he grew up in is so deeply imprinted on him he just can't change. He mouths about the revolutionary times we're in, but he acts as if we're not. You're right he can't use the inflation crap anymore. I think he'd love to get us in a crisis again and then cut rates. He probably is after absolute power, and he's been powerless so far to stop this "exuberance." He must be getting pretty mad that each time he raises rates, nothing happens! The market keeps rolling and roiling and rising. He's just too old.

To: RocketMan who wrote (7237)	3/7/2000 8:58:00 PM
From: MileHigh	Read Replies (1) \| Respond to of 24042

Rocket, Nice thoughts on the wealth effect. You are right in saying that "on average" not everyone is getting filthy rich in this market. I heard that something like 30% of all stocks are and have been in a bear market. Sure, some of us have done well and picked winners, but again, the majority of investors have made some money but nothing spectacular. To hold up our group of very aggressive concentrated tech investors as the "average" investor is not a fair assessment of what is going on. Hey, my Dad has been making some money but it hasn't changed his life or spending habits. MileHigh

To: RocketMan who wrote (7237)	3/8/2000 1:26:00 AM
From: David C. Burns	Respond to of 24042

Yes, Crazy Al's mouth forms the words "wealth effect" but what is that - the potential to create "demand imbalances" - and what is that - a cause of inflation. Then in the next sentence he concedes both that the chances of a large change in inflation are nearly zero and that the wealth effect has a very small impact. He ain't Crazy Al for nothing.

To: RocketMan who wrote (7237)	3/8/2000 5:52:00 AM
From: E. Davies	Read Replies (2) \| Respond to of 24042

But he lacks the tools except for the bully pulpit and interest rates, neither of which is particularly good for going after companies that have no debt and that have real technological advancements. Interestingly enough Al does have the tool to hit just high growth stocks. The FED has the power to raise margin requirements. There was a time when these requirements changed relatively often. Now it has been the same for nearly 20 years. I find it very curious that he never even mentions this possibility. Apparently this is a tool he does not believe in wielding. Eric