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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (1605)	9/12/1998 1:15:00 PM
From: Tommaso	Respond to of 3339

"Not wholesale exit, but the relative (percentage) amount of exit activity required is probably less than in 1987 to precipitate a similar liquidity crunch." That's probably correct, especially with things like the proposed Goldman Sachs IPO to soak up new money. It certainly seems true so far, because we've had a more than 10% drop with very little money taken out by redemptions from mutual funds. The whole interconnected web of equity markets, bond markets, bank credit, currencies, mortgages, leases, credit card debt, and so on seems vastly more complex than what existed in 1929, and it took a while then for economists to begin to understand what was happening. Ten years after Japan began to get into trouble, no one seems to be able to agree as to what should be done there. Of course one way to look at it might be to say that even if Japan is "in trouble" life is going on, people are getting plenty of food, the trains run, etc. I can't help feeling that prosperity in the United States is being maintained at the expense of the rest of the world and that at some point the rest of the world will tire of this inequality. If oil-producing nations cut their output by 10%, conditions would change overnight.