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To: Mike M2 who wrote (59672)	1/19/2001 12:49:20 PM
From: flatsville	Read Replies (2) \| Respond to of 436258

Flats, you are putting words in my mouth I NEVER said hedonics were the "cause." Mike you implied that very thing in the post to me (below.) >>Flats, I suggest that the Commerce Dept's abuse of hedonics is a far greater scandal due to the nature of its far greater economic implications. The fact that stock market valuations have reached unprecedented levels cannot be disputed but the reasons why are. The bulls - Wall St, mutual fund industry, the finacial press The Fed, Commerce dept et. al. would like us to believe that there was not irrational exuberence because the US has undergone a growth and productivity miracle thus higher valuations are justified.<< You certainly convinced davidd who then tried to draw a connection between manipulated productivity numbers (courtesy of hedonics) and money supply/printing with this: "Manipulation of productivity #'s allows the FED to overinflate the money supply... Clearly not the case. The last half of his statement I agree with: "...whilst temporarily hiding the damage being wrought." Hedonics will allow for that. It certainly helps. But it is not the cause of an overinflated money supply by any means.