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To: d:oug who wrote (37386)	7/20/1999 5:29:00 AM
From: d:oug	Respond to of 116786

The Crash of the Millennium, by Dr. Ravi Batra. [a soon-to-be published book] why we are likely to see a stock market crash some time this fall Dr. Batra, economics professor Southern Methodist University in Dallas, Texas. (on topic) If Dr. Batra is correct, then there is a very easy way to undo the not nice prediction of his. All that has to be done is to infect this man with a reading of Ron Reese's RRS posts, and he will rewrite it. <<.... money solely equates to psychology and preservation of the belief that we are economically healthy. Regards, Ron>> soooooooooo folks, believe believe repeat after me I BELIEVE doug

To: d:oug who wrote (37386)	7/20/1999 7:27:00 AM
From: long-gone	Respond to of 116786

<<Money solely equates to psychology and preservation of the belief that we are economically healthy. (and we basically are here in the US).>> Unless you look into most of the natural resource based sectors and at some level the manufacturing sector, which still suffers under heavy imports.

To: d:oug who wrote (37386)	7/20/1999 10:30:00 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 116786

getting dizzy again Wait!! You mean you have lapses? so I better reread for the first time Ron Reese's explaination Yeah... maybe you should. So 70-100 years ago people spoke in hundred's of millions instead of billions.... Big deal. If you kept your assets strictly in cash for that 150 year period, not deposited in a bank drawing interest, but rather stuffed in a mattress or buried in mason jars in the back yard, I would say that you deserve to have your wealth dissipate. You did nothing with that money. You did not put it to work through investing, buying real estate, or some other value-added asset. No.. your money would have just sat there collecting dust, hoping and praying that they would have gained value through becoming collector's items. You have to put money to work, Doug. It doesn't matter if something you paid $1 for 100 years ago now costs $2 or more. What matters is that your ability to earn income from wages or investments has increased commensurately. The key is maintain the velocity of monetary transactions as well as the public's acceptance of that money as a proxy for barter. There has to be slight inflation in an economy since that is indicative of growth and monetary policy can be adjusted to deal with it. It is when inflation gets out of control like between '78-83 that it becomes disruptive. My father was a contractor during that period. He once mentioned to me how he would bid a project only to find that material prices had increased more than his allowances by the time that he commenced work. He couldn't alter the bid, so he ate the difference and saw his profit margin drastically reduced. Hyper-inflation prevents businesses from properly adjusting their business costs and profit margins. Keep inflation at 2-3% and they can easily adjust and grow earnings no matter whether there are dealing in millions or billions. So let's not talk apples and oranges here. Inflation can be bad, but NO INFLATION is just a terrible for the economy. Regards, Ron