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To: slacker711 who wrote (72101)	5/22/2000 12:37:00 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 152472

slacker, i appreciate your critical thinking skills. :-) few people have them anymore (if they ever did). good question. let me clarify b/c i have been consistent. the answer lies in the fact that faked gdp numbers (doubling gdp - this is a fact. the argument is whether boosting gdp 100% through statistical "adjustments" makes sense, not whether it is boosted 100% - it has been boosted 100%) have caused a market to reach insane valuation levels under the mantra of a "new economy" that doesn't exist (ex out the statistical "adjustments"). this, in turn, has caused folks to begin to heat up the market for goods and services due to stock option sales and the gen'l wealth effect (not a "new economy" foundation). bottom line: 1. statistical manipulations painted the picture of a "new economy" that economic reality didn't support (therefore, the statistical, non-economic, adjustments). 2. folks believed the manipulation as reality (and it is not widely reported as most people are ignorant re: hedonic pricing methods) and boosted stock prices to absurd levels on a manipulated, false, premise. 3. the economy has been overheating (for some time. stock and house costs should not be ignored, imho, as non-inflationary) due to massive amounts of option sales at extremely elevated prices and the gen'l wealth effect. this scenario is totally consistent and, imho, is what has actually occurred to put us where we are at now. of course, the fed pumping dollars in the system at alarming rates is a necessary liquidity requirement for fueling the stock market gains. take away the matches and the kiddies can't light fires.