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

To: Haim R. Branisteanu who wrote (67143)	1/18/2001 2:29:28 PM
From: Saulamanca	Respond to of 99985

Haim, Who let da dogs out. woof -g- Jim

To: Haim R. Branisteanu who wrote (67143)	1/18/2001 8:44:32 PM
From: Mark Adams	Respond to of 99985

An interesting read; Schumpeter coined the phrase “creative destruction” to describe the nature of entrepreneur-driven capitalism, and the rediscovery of this clever phrase has lifted Schumpeter to the lofty status of Wall Street’s favorite dead economist. Wall Street needed an economic theory to justify paying unsustainable prices for NASDAQ stocks, and found one: Keynes is dead, long live Schumpeter! What few on Wall Street seem to know is that Schumpeter also believed that capitalism would ultimately morph into socialism, as the prosperity wrought by creative destruction would breed a class of idle intellectuals (yes, Schumpeter’s words!) who would stop it. So, we have the odd happenstance of Wall Street celebrating the work of a scholar forecasting the demise of Wall Street. <grin> As a teaser to get you to continue reading, here’s my conclusion on the current economic outlook: Both Wall Street and Main Street are currently exploding bubbles, and the explosions will self-feed, not self-correct until (1) the Fed eases massively, and/or (2) the federal government proactively reduces the budget surplus. pimco.com