stox

[Brad De Long]

>Michael Pollak wrote:
>
>>I was wondering about that.  Now I don't feel so bad.  If the Chairman
>>confuses productivity and supposed profitability, what is a person is only
>>knows what he reads in the papers to do?
>
>I think Greenspan is looking to tighten, and he's just saying stuff
>that gives him cover for doing so. If he thinks the stock market
>should grow no faster than household incomes - and he's implied that
>household incomes are growing too fast too - then look out below.
>
>Doug

If earnings are a constant share of household incomes, then all he is
saying is that price/earnings ratios shouldn't go up any more.

At least he didn't say that they had to go down immediately...

Brad DeLong