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To: PMG who wrote (57755)	1/16/2001 9:51:36 AM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

the answer is, bubbles don't exist in a vacuum. in order for an asset bubble to develop, credit creation has to go vertical too, and that's exactly what has happened. yes, they do matter...they distort the allocation of capital and resources, away from profitable endeavors toward purely speculative ones. after all, if the market keeps rising at an annual 20% rate, what for would anyone invest in traditional avenues of business investment? after a while, everybody begins to play the market instead, including corporations. happened without fail in EVERY known extended financial asset bubble. the question regarding the 'neutrality' of money concerns another point entirely, namely the question of whether money is a legitimate store of value, or simply a medium of exchange.