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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Mike M2 who wrote (11694)	12/17/1997 3:32:00 PM
From: George Acton	Read Replies (1) \| Respond to of 18056

My message had nothing to do with the cause of the Great Depression or the current Asian problems, so your scolding and moralizing are somewhat inappropriate. Analytically, it's helpful to separate the causes from the policy decisions that should be taken to rectify the situation. Whether the bad loans were made corruptly, as a result of recklessness and greed or were sensible at the time, they are there and are crippling economies like Koreas. The point I was making is that if Keynes's diagnosis of the Depression is the correct one, curtailing consumption makes the problem worse. That seems to be the reflex response on the part of Asian leaders, based on some ancient and respectable values, but it is mistaken in a modern market economy.