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To: Lee who wrote (122697)	5/6/1999 11:24:00 AM
From: edamo	Read Replies (3) \| Respond to of 176387

lee...<ot>..fed tightening... my comment wasn't directed toward market indices, but toward real day to day business....higher cost of borrowing, either lowers profit or passes on to consumer...i have an utter disdain for any government policy which controls money availability and its associated cost to the private sector..... look at the tremendous post war growth we had with no "fed interference"....inflation was a result of vietnam conflict spending, and government attempts at everything from price controls and "whip inflation now" schemes...maybe i'm dense, but how does an added cost help a business grow????? cost of money direct impact in consideration of investing in plant and machinery...when money became a controlled commodity it eroded our manufacturing base for the "commodity" could give a better roi than the ability to expand production, and pushed us to a service type economy....

To: Lee who wrote (122697)	5/6/1999 12:35:00 PM
From: Chuzzlewit	Read Replies (3) \| Respond to of 176387

Lee, wouldn't you agree that the real issue is not so much interest rates as real interest rates (i.e., inflation adjusted rates). The point behind raising interest rates is either to cool inflation, or prevent the emergence of inflation. I found it very interesting that AG spent so much time talking about the role that technology plays in increasing productivity. I'm not sure that this is a new paradigm. I think we are seeing a burst of new technology similar to what happened a century ago. But we will eventually achieve a new equilibrium level. I have in mind a sigmoid curve that will asymptote at a new level, because I cannot imagine that the pace of technological innovation can expand exponentially indefinitely. That is, at some point we must expect a slow down -- a flattening of the slope just as we saw earlier in the century. TTFN, CTC