Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Skeeter Bug who wrote (82775)	8/8/2000 7:16:42 PM
From: starhawke	Read Replies (1) \| Respond to of 132070

"Lies, damn lies, and ..."

To: Skeeter Bug who wrote (82775)	8/9/2000 9:21:12 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 132070

SB, you forget that the GDP data are ALSO distorted by hedonic adjustments. one example i can cite off the top of my head is computer hardware investment growth in '98. $8,8 billion in 'real' dollars were transformed into $ 145 bn. of hedonic dollars by the government. they simply multiplied the actual number with processor speeds apparently. the true state of the US economy is in fact UNKNOWN at this point to most market participants. the data that can't be distorted by hedonic adjustments, like consumer credit growth, current account deficit, etc., in short everything that deals with absolute numbers, all show precarious, and growing, imbalances. imo the hedonic adjustments should be removed from productivity and GDP data immediately, because as you say, if higher processor speeds indeed create increased efficiencies the straightforward numbers should show that. if they don't, the cited efficiencies do not exist at the macro level. in fact they don't exist at the micro level either. a study by Bob Bronson, using the respective corporations own numbers, showed that of the four bubble darlings MSFT, CSCO, INTC and GE only one, MSFT showed a slight improvement in productivity over the past four years, while it declined precipitously at the other three. of course he didn't hedonically adjust anything. hb