Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (167331)	7/2/2002 2:04:06 PM
From: The Duke of URL©	Respond to of 186894

GV, Milton Freidman, M-1, M-2, concepts of inflation, deflation and the velocity theory, and my post were all concerned with the money supply. Valuation is an interesting but different issue, I think.

To: GVTucker who wrote (167331)	7/2/2002 2:04:52 PM
From: chomolungma	Respond to of 186894

The decline in total market value of the market forces a similar deleveraging of the economy. There is less collateral for loans and less opportunity for leverage. This is exactly what has put a damper on the Japanese economy the last decade. They not only had the decline in their stock market, but they had a decline in the value of real estate as well. You may remember the absurd values placed on Japanese property in the early 90s. With the collateral value gone, lending fell and economic activity suffered. Compounding the problem was the refusal to recognize the bad debts and recapitalize the banks - something we're better at here in America.