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Pastimes : Clown-Free Zone... sorry, no clowns allowed

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To: Nadine Carroll who wrote (91551)4/8/2001 4:02:02 PM
From: Mike M2  Read Replies (1) of 436258
 
Nadine, the trouble with credit bubbles is that they lead to malinvestment and overinvestment - internet dot.con and semiconductors & telecommunications. What is especially troubling with the current credit excesses is that a substantial portion of the credit excesses were used for unproductive uses - consumption and financial engineering. Rising stock prices do not create wealth ( productive capital stock of a nation) but simply inflate the claims on existing wealth - stock repurchases, M & A. mike
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