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

To: pater tenebrarum who wrote (33555)	5/17/2000 7:34:00 PM
From: Lymond	Read Replies (1) \| Respond to of 42523

A lot of malinvestment going on these days. In the years ahead, Austrian theorists will be blessed with a veritable treasure trove of evidence to sort through from this period, IMO. Hope all is well by you.

To: pater tenebrarum who wrote (33555)	5/18/2000 8:34:00 AM
From: LLCF	Read Replies (1) \| Respond to of 42523

< 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. > You mean all those .com projects didn't make financial sense?? Or you don't think IBM spending more money on it's share buyback than it has made [since Gerstner came in] is prudent? Common, only time will tell. <g> DAK