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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: Lymond who wrote (33550)	5/17/2000 7:26:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 42523

Hi John, good to hear from you. interestingly, this capital spending boom is exactly what Austrian theory predicts to happen whenever the central bank keeps interest rates artificially low and pumps up the money supply too much. therefore, many of these investment decisions are likely cases of malinvestment in a credit induced crack-up boom. i regard the buying back of overvalued shares with borrowed money as one of the more glaring examples of this. the quality of corporate balance sheets meanwhile keeps deteriorating. it makes me think that the next recession will be a real horrorshow....