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To: nihil who wrote (71271)	10/10/1998 10:11:00 PM
From: LWolf	Respond to of 176387

nihil... I sincerely appreciate your response to my post. I have been frightened by this whole situation and have wondered how these financial webs will be unraveled. re your comments: "we are all Keynesians." The trick is to utilize conservative measures, such as open market policy and tax cuts, to restore aggregate demand. We, like almost everyone else, will spend any tax cut before we get it. Security holders will sell anything to a buyer with cash. Within a few weeks we can modify demand so that a great crash today could be over in a few months -- if the authorities have the guts. Of course there are longer term effects. A diving dollar reduces imports (good for U.S. (from the official view)) and increases exports (good for us) -- let it dive. The high dollar has contributed to the balance-of-trade problem -- this should get easier. Your post has been most enlightening and I can only hope the those who look out for our economic stability and well being (Rubin/Greenspan) are aware of these issues... and have been discretely addressing them in a way that ameliorates and/or eliminates wholesale US & worldwide panics. I'm a pragmatic DELL bull, who's turned bearish... but hopefully it's only temporary. many thanks, laura BTW, I'm so glad you are a member of SI; and the DELL thread !! :>)

To: nihil who wrote (71271)	10/11/1998 1:50:00 AM
From: Sig	Read Replies (2) \| Respond to of 176387

<<<<The key to the future is the US commitment to maintain near full employment in the face of massive deflationary pressure and general financial panic. I think the neo-Keynesian policy prescription is accepted, or at least understood, by every economist alive. Many will not view it as the best possible policy, but most will admit that it could work if we all pretended that it will work.>>> I can agree with that, but I would replace "full employment" with "maintain a full flow of money". There have been so many changes in recent years, with volumes of workers at Disneyland, Sea World,casinos,riverboats, and restuarants. Services and entertainment ( for us older retired workers)hehe, whereas factories have become more automated and efficient so as to require fewer workers. A whole new generation of retired people with SS and usually pensions.In addition there is workers compensation ,unemployment benefits, and welfare programs which represent fixed money flows Layed-off auto workers who qualify will receive (I think) 90% of full pay for two years. UN-funded or under funded pension plans have been corrected, Boeing pension money was once invested in Boeing stock and that is now a big no-no. And no retirement benefits unless one stayed with he company for 8 years, again corrected to where most companies must provide some retirement for 5 years service. I am not a trained economist(probably shows(hahaha)),so the government has me buffalowed with their complex computations. But these things have changed so much even in the last 5 or 10 years, that it is questionable that past economic theories can predict what might happen tomorrow. Just keep the money moving in the US and I think we will do OK. How does that joke go?. "Ask two economists for their opinion and you get three different answers" Excellent work on that post.... Sig