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To: eddieww who wrote (46323)	12/11/2000 8:00:20 PM
From: Oblomov	Read Replies (1) \| Respond to of 436258

>>It seems to me that a flood of liquidity is stimulatory, thereby increasing the likelihood of borrowers, especially corporations, being able to repay. Only if the cycle of paying current liabilities by taking on more debt continues. If anything happens to gum up the credit engine, then the whole system would collapse from the inside. Hyman Minsky wrote of how, during a period of credit excess, Healthy financial units transform into Speculative units, and Speculative units transform into Ponzi units... the system contains the seeds of its own demise. Have you heard the phrase, 'pushing on a string?' I'm not saying that your scenario could not happen... in fact it seems to be the tacit consensus among the cognoscenti... however, I'm willing to consider the likelihood of another set of outcomes that would be deflationary in nature.