To: Berney who wrote (3898 ) 9/13/1998 3:55:00 AM From: MonsieurGonzo Read Replies (1) | Respond to
Berney; RE:" Melts In Your Mouth - Not In Your Hand "The Economist this week is a friggin' melting globe (^_^)tight macro-economic policies and far-reaching restructuring - have made things worse not better. Extreme critics think that the Fund should be abolished; Meanwhile, America's Congress is blocking an urgent increase in its funds. (political difficulty funding Russia with 30.000 nukes)panic . But the way to resolve these mistakes is to improve the IMF; it is not, as the critics advocate, to withhold much-needed funds. (besides, we have no other mechanism to do something)up interest rates purely to establish its anti-inflationary credentials; if all of the above - then things would indeed look bad for the world economy. But one hopes that not all policy-makers could be that incompetent. (given, of course - that we actually had leaders to begin with)biggest risk now to the world economy may lie not so much in a deep depression, which could be averted. It is that there may be a wholesale retreat from free markets. (neo-fascism -vs- neo-capitalism)the negative wealth effect (stock market equity values going down, essentially reducing American's "savings") on the rate of consumer spending , which is so important right now - given that there ain't no spending on kapital goods, folks ! uhhhhh-- did they say a 40 % drop
