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To: Skeeter Bug who wrote (123393)	4/10/2001 12:12:40 PM
From: Wayners	Respond to of 164684

The Chain type annual weights are just one of three ways to weight the index of real GDP. Hedonic indexes are based on statistical regressions that reflect historical relationships between quality change and price change. Hedonic indexes are used for computers in the PPI which I think you pointed out yesterday. Checking your links out. Thanks.

To: Skeeter Bug who wrote (123393)	4/10/2001 1:24:00 PM
From: Wayners	Read Replies (3) \| Respond to of 164684

but then, you probably think bezos is a "straight shooter" and nobody ever acts in their own self interest! ;-) No, Bezos is pretty much a crook. I do have to laugh though at how he used his knowledge of the Wall Street Game from his days working as a hedge fund manager to fleece the street. He knew that he could capture the hearts and wallets of wall street simply by putting together rapid sales growth statistics. He knew people would simply follow the top line growth numbers and say WoW this is a phenomenal grower! Bezos took advantage of the Price to Sales valuation ratio to the extreme. Good for Bezos. How much of his stock was he able to sell out at much higher prices?

To: Skeeter Bug who wrote (123393)	4/10/2001 1:34:38 PM
From: Wayners	Read Replies (2) \| Respond to of 164684

There is a lot of really good information in the hodges link. While the hedonic price index and chain deflator from computers would make some changes to the GDP, we're talking about a .3 adjustment to the GDP number from the chain deflator and the chained dollars would change 100 to 200B out of a 6 trillion or 7 trillion annual number. I think thats another small difference. The corporate profits we used to see over the last 5 years were real. Unless productivity was indeed high, there's no other way to explain them. He suggested that productivity numbers were overstated by .3 to .7 versus the 4% to almost 6% numbers that were coming out. Still even if you account for his suggested revisions, the producitivty growth numbers were still really good. I'm going to look for a link to the latest actual Balance of Trade report so I can look at the Current Account and Capital Accounts. Hodges had a good chart showing the Balance of Trade deficit in relation to GDP--which is what I was looking for. What may be happening is that while our productivity growth was good, the productivity growth of China, Japan and Europe was higher as that would explain the corporate profits and the current account deficit better.