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To: Skeeter Bug who wrote (96098)	3/11/2000 10:52:00 PM
From: MSI	Read Replies (1) \| Respond to of 164684

ever heard of "chained" dollars? they are the difference between the new economy and the old economy But also the velocity of transactions and increased avail of credit causes which increases in M1, M2 and M3, i.e., avail money. That's not a "bubble", unless you postulate a reversal of this velocity. Most believe, as I do, this acceleration of money exchange won't slow down, but will increase dramatically. A huge amount of $$ is "created" when you can cause a payment to occur and be redeployed in minutes, rather than weeks, as in the old economy. That adds trillions in reduced latency. The "injection of federal funds" into the economy is confusing to me though, since that sounds easily reversible if it did happen. Maybe someone can explain what's really going on there, if anything. And why big G doesn't just mandate the SEC cut back margin lending to cool the right parts of the market, instead of beating the old economy stocks further to death. Inflation? That's for damn sure, in certain areas, like housing here in San Francisco. But not in traditional wages, food, life support. Hey, we're into the information age, I tell my kids if you don't handle that you'll be at the bottom of the pyramid. Eventually though our biggest issue if this explosion in world economic efficiency continues will be: what do we do when the bills are all paid? Until then our job as investors and technocrats is to keep building. That insanely utopian optimism is in the numbers, but can't be accepted by low information-content old industrial thinking, where compounding never happened like that, so they sit around saying "Hrumph"