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

To: BGR who wrote (77262)	3/8/2000 2:33:00 PM
From: Mike M2	Read Replies (1) \| Respond to of 132070

BGR,so you have no problem if the use of credit for financial engineering ( stock buybacks) rather than expanding the productive abilities of the debtor. Carnegie steel was not built by financial engineering but by reinvesting the profits to improve productivity and increase capacity. This is what real wealth is the dangers of paper wealth should be obvious when you look at the i-nuts for example Amazon. AMZN has no profits in the forseeable future how will its debt and equity investors be repaid. What is the liquidation values of a domain name and a warehouse distribution network I would guess it is substantially less than its current market cap. If the market creates credit so judiciously and efficiently please explain the florida land boom of the 20s, the Texas real estate bust, the S&L crisis - BTW your man AG praised Charles Keating's Lincoln S&L prior to its demise HO HO HO, the Milken's Junk Bond disaster, THE JAPANESE BUBBLE, the collapse of SE Asia, the demise of the world reknowned Reichman's bros. real estate empire Olympia & York, the vast mileage of rail lines in the late 1800s that went into receivership. if you like you can chose any boom/bust cycle which you feel illustrates that markets can allocate capital efficiently. I don't expect you to answer all of the aforementioned just one. may I humbly suggest that you think long and hard before you answer . the process may be quite enlightening. -g- ho ho ho mike