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

To: Wally Mastroly who wrote (12703)	3/23/2000 3:21:00 PM
From: Justa Werkenstiff	Respond to of 15132

Wally: Re - Fomc: "The staff forecast prepared for this meeting suggested that the expansion would gradually moderate from its currently elevated pace to a rate around or perhaps a little below the growth of the economy's estimated potential. The expansion of domestic final demand increasingly would be held back by the anticipated waning of positive wealth effects associated with earlier large gains in equity prices and by higher interest rates. As a result, growth of spending on consumer durables and houses was expected to slow...." Wrong. They forgot to call the Treasury to see what their plans were. The Treasury forecasted more wealth effect with heightened consumer spending to a rate way above the economy's estimated potential. And they made it happen. Greenspan is no longer the most powerful man on earth. The Treasury rules.