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To: Jeff Jordan who wrote (214)	8/29/2001 6:31:47 PM
From: Jeff Jordan	Read Replies (2) \| Respond to of 373

A Blast from the past: Tuesday, September 1, 1998 Testing the Wealth Effect /^\/^ \----\| _---'---~~~~-_ ~~~\|~~L~\|~~~~ Hmmmm, He was right (/_ /~~-- to bad he pulled his punch \~ \ / /~ in the rest of the article __~\ ~ / ~~----, \ \| \| / /\| \|/ \| \| \| \| \| o o /~ \| By Scott Burns Come with me to the front lines of Worry. The latest innovation here is called "the wealth effect"--- the idea that recent declines in stock prices will reduce the feeling of wealth and security people have, causing them to cancel all those orders for yachts, new carpeting, and projection TVs the size of Rhode Island. Then people will be out jobs, incomes will actually decline, and we’ll be in a recession. "Deep doo-doo," in the immortal words of former President George Bush. Worse, it could be a spiraling wealth effect. You know, where a lower stock market today begets a lower employment rate tomorrow, begetting a still lower stock market the day after, resulting in a still lower employment rate after that, and so on until all of us die in a conflagration of inoperative Visa cards My suggestion: don’t believe it. ``````````````````````````````````````````` No believe it!