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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 78.030.0%Dec 24 12:59 PM EST

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To: Steve who wrote (49002)2/16/2001 6:18:58 PM
From: SouthFloridaGuy  Read Replies (1) of 77400
 
Dude, the Great Depression, the 80's Japanese bubble, and the US Bubble of 95-2000 were created by one thing and one thing alone:

Easy CREDIT, which led to highly leveraged consumers and corporations, which created MalInvestment and economic imbalances, which creates a huge deleveraging process.

The difference between Japan and the U.S. is that they are net creditors and we are debtors, which ultimately means that the deleveraging process will come at the expense of inflation and the Dollar.

If the Fed wants to save the dollar (which it doesn't appear that they care about), they will have to behold strict monetary pollicy at the expense of the US consumer - this will cause a sharper pain but ultimately get us out of the inevitable deleveraging a lot faster; Volker would have done it, but Greenspam is another story.
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