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Pastimes : Ask Mohan about the Market

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To: John Hunt who wrote (8032)11/16/1997 2:15:00 AM
From: kormac  Read Replies (2) of 18056
 
Bonnie, John, Jack, Larry, Sarkar, Zeev, and others.

Very enlightened discussion on this thread for a novice such as myself.
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Today's NY Times: Global Good Times Meet the Global Glut by Louis Uchitelle.

President Clinton's failure last week to persuade Congress to give him freedom to negotiate trade deals reflected skepticism among Americans about the benefits of a global economy ...
The worriers are often the very business executives and international investors who built today's gloabl economy and now fear that it might backfire. (Ed. Hopefully only a slight understatement)

There is something to worry about. The Asian financial turmoil may be the first stage of a developing worldwide crisis driven mainly by ... overcapacity....

"There is excess global capacity in almost every industry," Jack Welch, chairman of General Electric, said ....

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A few years ago I read Lester Thurow's The Future of Capitalism in which he discussed the Mexican Peso Crisis and the causes for reduction in american wages. If this deflationary trend sets in and americans follow the other countries and stop consuming, what is going to pull the world economy out of the slump? Nothing for a good while.

On that happy thought have a good Sunday.

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Zeev keep posting on GATE. I need your help. I did not sell when it hit $3. I am not quite savvy enough to see the right exist re-entry.

Regards, Seppo
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