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To: geode00 who wrote (12754)3/4/2001 4:49:24 PM
From: Skeeter Bug  Read Replies (1) | Respond to of 42834
 
>>If you borrow money so that you can stick it in the fire and burn it, that's not worthwhile.<<

sounds like the $100s of billions spent in the dot com mania... sounds like the fuel that kept people buying from naz 3k to 5.1k, too. see where i'm going with this?

not to mention that people extrapolate credit demand into the future as though the savings rate can go to -10%, money supply can go into the 20% range and interest rates can go to -5%...

it is a mania and sound business decisions aren't made. after all bartelsman bought napster.

an expanding economy or a declining economy are effects. what we need to find is the cause and see whether it is sustainable for the long run. the cause of this stock bubble was a manic credit bubble based upon a hedonic and chained dollars house of productivity cards.