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To: Skeeter Bug who wrote (133988)11/1/2001 1:20:02 PM
From: Oeconomicus  Read Replies (1) | Respond to of 164684
 
That explains why PCE could have grown so much faster than PI during the boom-times. From listening to the economic doomsayers over the last several years, you'd think it was all debt financed spending.

It would be nice, though, if the statisticians would occasionally rethink what they count and don't count based on real world practices. I'd think that gains from employee stock options, those actually realized that is, are not much different from cash bonuses in how they affect spending and saving habits of the average employee. If so, it doesn't make sense to exclude them from income calculations.

Still, since option gains have been a non-factor for more than just the latest month, PI being flat in Sept is not hiding a real decline (that is, vs. what we might have seen had option gains been included) and is not bad for the last month of the worst qtr since '91.

Bob