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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Giordano Bruno who wrote (33355)	5/16/2000 8:57:00 PM
From: patron_anejo_por_favor	Read Replies (2) \| Respond to of 42523

Some nuggets of wisdom from the WSJ article on the Fed Funds rate hike: interactive.wsj.com Treasury Secretary Lawrence Summers, while declining to comment directly on the Fed's actions, said the U.S. economic growth is likely to remain strong. "The economic expansion has continued to be investment-led in very important respects, and that means it has been based on expansions in capacity which form a basis for ...continuing growth," he said. Let's see...investments expand capacity, which expands growth, which expands investments which expand capacity which expands growth....sounds like bubble-inflating hot air to me! The Fed's latest regional economic survey suggested that competition and gains in productivity have kept consumer prices stable, despite signs of "increasing input prices" and "worker shortages ... in every district, and practically every industry and occupation." Hmmm, I think we want to bookmark that quote and trot it out around this time next month, eh? 50 BP's on the Fed Funds and the discount rate and more to come. The Fed is now DANGEROUSLY behind the curve; they'll need all of Voltaire's angels and Larry K's "special blend" to dream this nightmare away!