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Strategies & Market Trends : The Financial Collapse of 2001 Unwinding -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (8416)	1/21/2022 8:12:28 PM
From: Gemlaoshi	Read Replies (2) \| Respond to of 13783

elmat, I disagree that Greenspan was ever concerned about CPI price inflation. He had targeted a 2% CPI in order to inflate away government debt. Greenspan's "great conundrum" during the mid-90s was that ALL of the excess liquidity was going into the asset markets and NONE was going into the CPI inflator. Since the FED did not even measure or track asset price inflation, Greenspan and company felt comfortable in blowing the Great Telecommunications and Internet Bubble because asset price inflation was not showing up in the CPI inflator. Bernanke made the same mistake after the Internet Bubble burst by blowing the Great Mortgage Bubble of 2007-2008. This is typical Keynesian economics. If it doesn't show up in the CPI it doesn't count. If it DOES show up in the CPI, then you have the BLS redefine the CPI. This is why hedonic adjustments to the CPI calculations exist.