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To: NOW who wrote (85203)	3/25/2001 5:09:22 PM
From: yard_man	Respond to of 436258

The basic answer is between his two extremes -- when I buy something in one time period versus the other, only the difference in price level matters to me as a holder of USD -- not what happened to M3 or M1. The CPI has certainly understated inflation, but the bubble itself implies that a better price index would not have risen as fast as those measures of money, even with the "wealth effect." And the argument -- cast in terms that financial planners are practiced at -- focuses only on the index. There are many who have done worse and some who have done exceedingly better during the bull runs -- for the latter, stocks were truly a great way to escape the ravages of inflation, even if they were benefitting from a bubble -- the result of irresponsible actions on the part of the Fed and the investment banksters ...