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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Sedohr Nod who wrote (428119)	7/16/2003 8:16:44 PM
From: sea_biscuit	Respond to of 769670

There were people warning about the bubble even as it was being created. Former Governor Larry Lindsey said it at that time. "From the transcript of the September 24, 1996 FOMC meeting: In Lindsey's words, "'the long-term costs of a bubble to the economy and a society are potentially great. They include a reduction in the long-term saving rate, a seemingly random distribution of wealth, and the diversion of scarce financial human capital into the acquisition of wealth. As in the United States in the late 1920s and Japan in the late 1980s, the case for a central bank ultimately to burst that bubble becomes overwhelming. I think it is far better that we do so while the bubble still resembles surface froth and before the bubble carries the economy to stratospheric heights." Lindsey's analysis was prescient, to say the least. All Greenspan could offer in response was, "'I agree with Governor Lindsey that this is a problem we should keep an eye on." Of course, in the end, that's about all the Fed ever did -- keep an eye on the bubble. "