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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: WTMHouston who wrote (31444)	5/13/2000 4:13:00 PM
From: Skywatcher	Read Replies (2) \| Respond to of 50167

Greenspan is risking the entire economy with the continued inflation scare tactics...mostly the little people will get killed with credit card rates, mortgage rates, car loan rates etc...the 1/2 stuff just doesn't phase those with plenty of money...but of course he continues to deny he is trying to bring down the market prices...a load of crap. The continuing belief that EVERYONE is participating in the massive e profits and IPO profits is still a crock since most stocks in the small cap range have been down for the past 2 years overall...only in the market jump in the past 6 months have people gotten some of their money back...and of course lost it all again with the April 00 crash. chris

To: WTMHouston who wrote (31444)	5/15/2000 2:36:00 PM
From: Lee	Read Replies (2) \| Respond to of 50167

WTMHouston,..Re:.What happens though when companies say "we are not slowing anything down, we will just raise prices to offset the higher interest costs" There is evidence that some are now able to increase prices. In the guts of the NAPM and Regional Fed reports is evidence that manufacturer's have been paying higher prices for crude goods for some months now. They are also recently receiving higher prices for product. Re:.and in a tight labor market consumers say "if our interest expense is going up, we NEED to demand more money from our employers, which we can do given the tight labor market. There is evidence this is happening. Look at the most recent ECI shown below. stls.frb.org But there is also evidence that higher productivity has allowed for some moderation of accelerating costs as Ike's post points out. Finally, if we believe the statistics which state that only approximately 50% of the population has money in the market yet the GDP part of growth due to the consumer is 68%, then we would guess that what is fueling demand is NOT entirely due to those spending big market gains but those that spend daily at K Mart and KFC. The unemployment rate has a far bigger affect on spending than do market gains. Cheers, Lee