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Politics : Al Gore vs George Bush: the moderate's perspective -- Ignore unavailable to you. Want to Upgrade?

To: long-gone who wrote (2539)	10/15/2000 10:15:59 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 10042

Where have you been? Japan is mired in a recession-sub par growth period for years. Some measure it from 1989 when the Nikkei hit 40,000, it has not been there for 11, going on 12 years. There is nothing that dictates this could not happen here. As a matter of fact, I believe that it might very well happen, however, if a "readjustment" takes place over a relatively lengthy period (let say five to seven years), it will not precipitate a depression (which has not occurred in Japan either), however, a sudden collapse of the financial markets has a very good chance of precipitating such an event. There are "open" mechanisms in place (like trading halts etc.) to try and avoid sudden dislocations in the financial markets, and to the extent that the law permits, there are also "less open" mechanisms for such intervention. I for one believe that Greenspan (a devout Ayn Randist, at least in his youth <g>) has kept interest rates excessively high during periods of low inflation to enable him to use that one instrument in those cases he sees an imminent dislocation developing in the financial markets, as he did during the Asian crisis and the Russian default. Was that within the boundaries of what law allowed? I think so. Zeev