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To: Art Bechhoefer who wrote (10467)	5/19/2000 7:16:00 PM
From: J Krnjeu	Read Replies (1) \| Respond to of 13582

Hell Art Bechhoefer, What worries the Fed is NOT inflation as measured by consumer prices but as measured by some curious notion that stocks are too high. It is not in the charter of FED to target stock prices. They are only to protect the money supply. Everyone knows the FED is going after inflation (even if it doesn't exist) and doesn't care about the stock wealth effect. The FED would never go beyond their charter after stock prices. I wish we would have a senator/congressman who would call Greenspam on the carpet about this so called stock wealth effect. I would rather see some kind of a control that says if inflation goes up by x% then interest rates go up by x%. In some industries, an increase in interest rates causes an increase in prices causing an increase in the inflation rate. Shelf fulfilling prophecy. I believe Greenspam is OVERRATED, under knowledgeable(?is that correct) and just plain lucky to have served during the 90's. I believe that Y2K caused the tech revolution and the increase in productivity. As 1999 went out to bad it didn't take Greenspam with it. Thank You JK

To: Art Bechhoefer who wrote (10467)	5/19/2000 8:34:00 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 13582

ArtB, a voice of reason I still like Kudlow and his steady wisdom, inflappable so many older economists and policymakers have been conditioned by the 1970's and its fearsome wicked inflation, which was real and big and destructive today's problems used to be deflation, now strong growth... their principal legitimate concern is now shrinking labor pool... that is why I think they are willing to risk a slight short recession in order to allow the labor pool to catch up to demand... a recession permits demand to slip for a spell my objection to their perceived need is the free market system... in one speech on China, Greenspan lauded the free market system and abandonment of central control... then he turns around and continues with central monetary policy few people realize how much the shortend credit markets are STILL in control... this market recently opened the door for a quick 50bpt rate hike, and we got it energy surging prices are real, but not lasting... I expect they will further encourage alternatives like electric cars... but labor issues are real I dont know how much capital equipment can truly replace so many lowskilled jobs... just thinking out loud / jim