Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: BGR who wrote (72013)	12/17/1999 10:42:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

BGR, the Austrians said communism would fail because their was no price mechanism to impose tough love. instead the state propped up failed enterprises - malinvestment and maladjustments in austrian speak. Why should centrally planned interest rates be so effective. The real estate bust is a good example of what happens when excess credit is created. If the market were allowed to raise rates to restrict credit flows to real estate developers then we might not have experienced the over building that we did. The strength of capitalism comes from the markets tough love you are free to flourish or fail. When the state props up failed enterprises or favors an industry we sacrifice efficiency. Look at Korean and DRAM. Look at all the overinvestment in industrial plant and equipment in SEA leading to TL & EV. You are a difficult student but you will learn about TL & EV one way or another -g- ho ho ho mike