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Pastimes : Ask Mohan about the Market

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To: Joan Osland Graffius who wrote (9549)11/27/1997 11:26:00 AM
From: Mike M2  Read Replies (1) of 18056
 
Joan,the Austrian economists would argue that the problem with excess monetary ease is the distortions it creates in the economy. Look at the excess capacity in SE Asia and Japan-they overinvested.In the US Look at the record debt,bankruptcies and deliquencies overconsumption. It is important to examine the situation in Japan and ask why has the prolonged period of low interest rates failed to stimulate their economy. You cannot stimulate the economy when the existing debt burden is excessive. I do expect a substantial slowdown in earnings and i really don't know what can be done to prevent it. Mike
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