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 : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: M. Frank Greiffenstein who wrote (6757)	12/2/1997 7:20:00 PM
From: Karl Drobnic	Respond to of 31646

Yardeni's Y2K recession: It seems to me that recessions happen when the velocity at which money passes from hand to hand slows down. But in a "Y2K recession" money must be spent. There's no choice. So instead of the Fed. govt. running a huge deficit, we may have a new factor: unprecedented Corporate Deficit Spending (CDS). Like the Fed, corporations can issue bonds, tax the public (raise prices), and print money (issue new shares). CDS will be stimulative, since money will be spent in huge amounts. Where it is spent will shift, and we may yet see Jenkins on the cover of Time as the "Man of the Year" for his efforts in averting various national crises. But money will be spent. In fact, the Fed will have to keep interest rates low so CDS can fund the Y2K remediation. Crisis, yes. Recession - maybe.