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Pastimes : The Naked Truth - Big Kahuna a Myth

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To: pater tenebrarum who wrote (59278)8/30/1999 1:58:00 PM
From: TheStockFairy  Read Replies (1) of 86076
 
The question was if he economy is prospering solely due to the wealth effect.

Questions:

1) Is overstatement of earnings due to ESOPs and pension funds result from the wealth effect?

2) Do corporations go into debt due to the wealth effect?

3) Does misallocation of funds occur due to the wealth effect?

Basing your argument on that corporations misallocate funds and create stock purchase programs because their stock price is high doesn't even qualify your argument for specious reasoning.
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