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

To: Knighty Tin who wrote (71236)	12/1/1999 3:36:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

To all, even people from NJ -g- excerpt from Nick Chase- one his readers responds: "I have to disagree though with one aspect of Paul Milne's column.... Yes, the vastly increasing money supply has gone into asset inflation instead of goods inflation. But when the bubble bursts, I don't believe that this money supply will come flooding back into the economy. Instead, it will be vaporized, disintegrated, annihilated. The debt will still remain in mortgages and credit cards, but the paper wealth and wealth-effect good feelings will be gone. (The psychological effect will be just as devastating as the market crash.) With the sudden loss of billions of dollars from the money supply, we will experience deflationary recession; probably a depression. The Fed can inject liquidity all they want, but it won't help. With the market trading at half or one-third of the current values, I think there will be just too much money destroyed too quickly for the Fed to compensate. " fiendbear.com