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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: LemurHouse who wrote (44079)	3/20/2001 5:17:55 PM
From: Ian@SI	Read Replies (1) \| Respond to of 70976

I think that it is and has been that he wants to bring down the money supply This just isn't true. Money supply is being rapidly increased; and has been all this year. Sooner or later, it's bound to kick in.

To: LemurHouse who wrote (44079)	3/20/2001 5:55:09 PM
From: Sam Citron	Read Replies (2) \| Respond to of 70976

Andrew, I think that you have articulated Greenspan's agenda rather well, perhaps better than he has. However, in spite of his much heralded concerns over irrational exuberance, I think that he has been more concerned with the concomitants of an overheated economy than with the level of stock prices per se. Last March the ECRI (Economic Cycle Research Institute)industrial price index was giving off signals that the prices of key industrial commodities were beginning to spike upwards. Greenspan believes that his key mandate under the Federal Reserve Act is to maintain price stability while preserving moderate sustainable economic growth. I think he is much more concerned about incipient inflation than the absolute level of the stock market. As far as transparency is concerned, you can read the official summaries of FOMC meetings soon after they are held, although the entire transcript is sealed for, I believe, ten years. If Congress wants to change these rules to mandate greater transparency, it can do so. Few seem to really care, however. For example, I have never seen a written transcript of the public televised question and answer session that accompanies Greenspan's frequent congressional testimony. If there was a reasonable demand for such information, I think it would be readily supplied. I'm not sure that most people really want a Fed chairman that agrees to be interviewed by Tom Brokaw. Sam