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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: smolejv@gmx.net who wrote (12086)12/24/2001 6:24:55 PM
From: elmatador  Read Replies (1) of 74559
 
The world's economic system has some immunity against busts:
ENRON kaput: largest bankruptcy in history followed by -in less than four weeks- the biggest default of a country, Argentina.

The system is resilient. It works like this gastroenteritis I've got yesterday, the body just need to be kept in the right balance for the, viral, disease to works its cycle through. Slowly the body restarts to tolerate food and the normal diet resumes and it survives.

The economic system is working in a similar way. It just need to keep the balance to allow the sickness to work through. Make the bust as localized as possible, by, for instance, supporting Brazil and by April the news are in page 24 of the newspapers.

Has the body been in a 1929 status, meaning a gastroenteritis in an infant, the desease would kill in a couple of days. 1962 I lived in the bush and babies died like flies in our neighboorhood. Continuing the parallel between disease and economic development stage, babies don't dye of dehydration here as they used to. Mothers are more educated, there is a Dr. closer by, television can make a quick national campaign and so on. The health system can cope with dehydration today, far better than in 1929. So does the economic system today. It can cope better with catastrophes. It has gained and learned ways to live with the disease.
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