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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: westes who wrote (51867)	5/23/2000 8:20:00 PM
From: Jon Tara	Respond to of 99985

Yes, I misunderstood you. I think demultiplier would have been clearer. :) Of course, if inflation gets high enough (no where near that point here) then the "spend it before it devalues" mentality sets in. But as it is, the situation should correct itself (and probably over-correct itself) rather rapidly. Spending slows down, profits dwindle, over-extended PEs become even more rediculous, even at lower stock prices, and stocks plunge further, further reigning-in spending. I doubt that Greenspan had to do a thing.