conventional wisdom

[Brad De Long]

>Tom Lehman wrote:
>
>>Conventional wisdom has it that politicians will do anything to pump up
>>the economy in a presidential election year.  This line of reasoning
>>says, that there will not be any big problem with stocks this year.  The
>>politicians won't let it happen.
>
>But an unelected guy who just got reappointed for a long, and 
>possibly his last, term has a lot more to say about it than 
>"politicians." I believe this fellow is talking to the House Banking 
>Committee later today; we'll see what he has to say.
>
>Doug

It's too late. Interest rate increases today won't affect the flow of 
spending until November. (On the other hand, they will affect the 
stock market today.)