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To: Elroy who wrote (121235)	7/3/2002 8:23:41 AM
From: Art Bechhoefer	Respond to of 152472

However, when Greenspan recognized that stock prices were too high, due to "irrational exuberance," he used the wrong tools to correct the problem. Instead of raising interest rates, he would have been better off adjusting margin rates to discourage speculation and prevent a bubble from forming. His lack of interest in the margin rate tool (which is part of the Federal Reserve mandate) can be attributed mainly to his narrow definition of his job (adjusting short term interest rates). Therefore, to give him the benefit of the doubt, he is simply myopic, probably due as much to age as anything else. Art