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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: the_wheel who wrote (8044)8/31/2001 3:15:29 PM
From: elmatador  Read Replies (2) of 74559
 
<<``In such circumstances, differences in the propensities to consume out of the capital gains and losses on different types of assets could have significant implications for aggregate demand,'' he said.

Translation:
The economy will be in deep shit if -as a result of the bubbles deflation- the consumer will not have those 3-5 and 10-15 cents ro spend in good and services.

Funny, did he mention anything about INVESTMENT and GOVERNMENT EXPENDITURES which are also included in the aggregated demand?

EL ECONOMISTA
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