WASHINGTON _ The Federal Reserve needs to pay closer attention to what happens on Wall Street, Chairman Alan Greenspan said Friday since Americans reaping the rewards of the high-flying stock market are using those paper profits to justify spending and other financial decisions.

Who gave Greenspan auhthority to regulate American citizens' financial decisions?

Some economists interpreted his comments as a signal that the Fed may further raise interest rates this year. Two previous increases --this week and on June 30--have failed to dampen the Wall Street stock- buying "exuberance" that Greenspan has expressed concern about. Stock prices were down slightly after his speech. "We no longer have the luxury to look primarily to the flow of goods and services, as conventionally estimated," when evaluating broad economic conditions, Greenspan told colleagues, at the Federal Reserve's annual retreat in Wyoming's Grand Tetons. The text was distributed in Washington. The Fed's recent interest. rate increases have been aimed at easing inflationary pressures that central bank policy makers fear are building in the economy as U.S. consumers continue a protracted spending binge. Despite the announcement on Tuesday of this year's second quarter-point increase in the influential federal funds rate_the interest rate at which banks lend each other money_the Dow Jones average of industrial stocks hit a record high of 11,326 on Wednesday before declining a bit the next day.

Here comes the Bull Shit from the Banksters !

"The concern is this: The major driver of consumer spending right now is the stock market. Until and unless we can reduce some of that unwarranted enthusiasm in the stock market we are not going to be able to slow consumer spending for a soft landing," said Sung Won Sohn, chief economist with Wells Fargo & Co. in Minneapolis.

This is unbelievable !!! The Stock Market is NOW driving Consumer Spending!!! What CRAP!!!

There has long been a debate in economic circles over whether financial markets should be taken into consideration when the Fed sets interest rate policy. Since a primary goal of the central bank is to keep inflation in check, some argue, it needs to focus mostly on price changes in the real economy, looking at such things as whether commodity prices or wages are rising too quickly. Greenspan, however, in Friday's speech, said that given the larger percentage of household wealth that is now accounted for by investments, the central bank needs to watch financial markets more carefully.

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HERE IS THE UNETHICAL ASSAULT ON INVESTORS!!!

1. The Banks are losing deposits to Mutual Funds and Stocks;
2. They pay Greenspan to say things to frighten investors;
3. The Banksters know, when and where, he will push the stocks down;
4. The Banksters sell stocks short;
5. Banksters sell bonds to drive interest rates up;
6. Greenspan does his "act";
7. Banks get deposits from those who sell stock and go for "more secure bank deposits" to protect their pensions; and
8. The Banksters reap enormous profits from well-timed deals on stock & bonds, based on INSIDE INFORMATION.

AND ...,some people want to have their Social Security Trust Funds in the Stock Market, so they can pay commissions to the BANKSTERS, who will soon be able to own Stock Brokerages.

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