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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (18227)	2/5/1999 9:24:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 86076

HO HO HO, somebody else made the same connection I did... "But the evidence that I see does not suggest a bubble; rather, it indicates that we have at last arrived in a new-era economy ?" -- Wayne Angell, Chief Economist Bear Stearns, "The Bubble Won't Burst," Wall Street Journal, February 3, 1999. "Stock prices have reached what looks like a permanently high plateau ? I expect to see the stock market a good deal higher than it is today within a few months." - Irving Fisher, Professor of Economics Yale University, October 16, 1929. "The bull-market case ? rests firmly on the belief that sound money is here to stay ? This new era had its origins in October 1979 when the Federal Reserve began moving toward a policy of sound money ?" - Wayne Angell, "The Bubble Won't Burst," Wall Street Journal, February 3, 1999. "The dollar ? has been partially safe-guarded against wide fluctuations ever since the Federal Reserve System finally set up the Open Market Committee in 1922 to buy and sell securities ? [S]tabilization ushers in a new era for our economic life ? adding much to the income of the nation ? [T]he Federal Reserve does and should safeguard the country ? against serious inflation and deflation ? This power, rightly used, makes the Federal Reserve System the greatest public service institution in the world." [emphasis added] - Irving Fisher, The Money Illusion, 1928. The 1920s were very similar to the 1990s - a relatively stable price level, the rapid introduction of new technologies, such as the automobile, electricity and the telephone, booming capital spending, and a booming stock market financed by credit with widespread public participation. As can be seen from the quotes above, Professor Irving Fisher, a leading economist of the 1920s, believed that the good times would never end, for, in his words, we had ushered in a new era. But not all economists shared Professor Fisher's optimism and belief that the stabilization of the general price level was a sufficient, or for that matter, even a necessary condition for eternal economic prosperity. One such dissenter was Benjamin M. Anderson Jr., Chief Economist Chase Manhattan Bank. In November 1929, Anderson wrote: Basically, our present troubles grow out of the excessively cheap money and unlimited bank credit available for capital uses and speculation from early 1922 ? until early 1928 ? There is no intoxicant more dangerous than cheap money and excessive credit [I love it!]? [But] when old-fashioned voices raised in protest, calling attention to old landmarks and old standards, raising prosaic questions regarding earnings and dividends and book value, they were drowned out by an indignant chorus, which chanted that we were in a "New Era," in which book values no longer meant anything, and dividends little, and in which we might capitalize earnings in any ratio that the imagination saw fit to set ? But it's different this time. Wayne Angell told us so!

To: MythMan who wrote (18227)	2/5/1999 9:25:00 AM
From: accountclosed	Read Replies (2) \| Respond to of 86076

A lot of damage control press releases on that subject from Rubin, Slick, IMF, and Brazilian officials lately. Everyone wants to save Soros from another loss? <g>

To: MythMan who wrote (18227)	2/5/1999 9:27:00 AM
From: John Pitera	Read Replies (1) \| Respond to of 86076

Myyyyyth, <<no cause for panic>> thats what my copy of HitchHickers Guide to the Galaxy Says......

To: MythMan who wrote (18227)	2/5/1999 10:04:00 AM
From: eddie r gammon	Read Replies (3) \| Respond to of 86076

Found a computer thats hooked up to the net here at M D Anderson. Have not seen a thing since last Monday. What's up with the POS? erg