Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: smolejv@gmx.net who wrote (5711)	7/8/2001 2:33:45 AM
From: Don Lloyd	Read Replies (1) of 74559

Dolinar - Nah, it's not that simple - money just being pushed around, like "can you Fedex it to me" etc. It involves decisionmaking etc. I personally dont like the equation, it's my (too) scientific background, but it still is or at least hints at some basic law.... The decisionmaking comes in when individuals make subjective decisions to balance the purchase of current goods, current money expenditures and saving to fund expenditure decisions in an uncertain future. The velocity of money only matters to the portion that you transport in a wheelbarrow. There is no benefit to hinting at some basic law that doesn't exist, or creating a useless tautology. Regards, Don

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