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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: PaperChase who wrote (65971)	8/8/1999 6:17:00 AM
From: Skeeter Bug	Respond to of 132070

>>I find your comments about the overall market to be something that does not reflect reality. It is speculative insight only.<< pc, interesting view. i see fleck's comments representing reality while the market merely has speculative insight - and poor insight at that.

To: PaperChase who wrote (65971)	8/8/1999 7:05:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 132070

pc, it seems like you hang out much of the time in a place where you disagree with people. curious.

To: PaperChase who wrote (65971)	8/8/1999 10:53:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

PC, AG & company have done a remarkable job maintaining confidence but I do not believe that we have avoided disaster but simply delayed it at the price of a bigger disaster ( perhaps over the next few months). Two points about bank lending the financial sector ( non bank) has become a larger source of credit than the banking sector and the widening of spreads suggests liquidity problems and unlike bank loans the market of value financial sector debt is marked to market daily- you cannot hide problems for long. Maintaining credit expansion at a steady rate is not sufficient to keep a credit bubble going - credit must expand at an ever increasing rate at some point balance sheets will become so strained that rising defaults are inevitable. At this point we have deflation- the contraction of credit. The US experience of the 1930's and Japan in the 90's does not support the assertions of todays political economists that we can print our way out of depression. IMO all that AG & co. accomplished by prolonging the boom is to exacerbate the inevitable bust. Mike