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To: flatsville who wrote (60171)	1/21/2001 11:56:29 AM
From: flatsville	Read Replies (3) \| Respond to of 436258

As I said no TL from this White House. redherring.com ON THE STOCK BUBBLE TP: Another one of your friend Mr. Lindsey's concerns is that there is an asset-price bubble. While he acknowledges there have been fundamental improvements in America's economy, he has no doubt that Wall Street is overvalued. His concern seems to be how painful the inevitable bursting of the bubble will be. GWB: Yes. What he is worried about is that pressure on interest rates will cause the market to go down, which will in turn cause consumer confidence to decline. JP: From our point of view, it seems as if Alan Greenspan has been raising rates as a way to keep the stock market in check. Do you think stock prices are a legitimate concern of the Federal Reserve Bank? GWB: By the way, I think Alan Greenspan has done a good job and I think the president ought to reappoint him. TP: Hopefully he will take the job. GWB: It's important not to politicize Federal Reserve decisions. It is very important for the Federal Reserve to be independent from politics. Anyway, if you talk to economists like Lindsey, they have a real concern that our labor market is tightening to the point where we might see inflation pressure. So, from what I read, it appears that Alan Greenspan is raising interest rates to slow down the economy somewhat and reduce inflation pressures. TP: How about this notion of the "new economy," which contends that the rules of economics have somehow been rewritten, and changed rules somehow mean we can live with higher price/earnings ratios? GWB: That is a very interesting question, and you should talk to the people who know more about economics. I am a simple man running for president. [Smiles.] Another very interesting question is, have not only the rules changed, but will economic recessions be deeper and shorter in length? Has the whole speed of the Internet economy really changed the old rules of economics in this area as well? I think the verdict on all this is still out.

To: flatsville who wrote (60171)	1/21/2001 12:39:44 PM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 436258

I thought AG controlled the interest rates but that the Treasury Dept controlled the repos and coupon passes? The Treasury and Fed are not one in the same. Am I wrong in this? If so, then I guess the injections will continue..... Good Luck, Lee

To: flatsville who wrote (60171)	1/21/2001 1:24:21 PM
From: Mike M2	Read Replies (1) \| Respond to of 436258

Flats, Greenspan may have to answer to the currency markets . At some point the US $ will suffer from the maladjustments and credit excesses. mike

To: flatsville who wrote (60171)	1/21/2001 4:46:12 PM
From: NOW	Read Replies (2) \| Respond to of 436258

well, I tend to agree that the new administration will not likely be less permissive with the green ink, BUT: many republicans may in fact fear of the price they will pay if INFLATION comes back on ThEIR watch: clinton clearly left office with zero inflation problem as we all know. lol