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.

Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: 16yearcycle who wrote (25404)	10/16/1998 5:55:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 70976

Touche - But my point was that the second effect happens very quickly - on the order of hours or days. Just a recap of my fear. All past recessions since WW-II have been ultimately due to lack of capacity. Thus, even in the depths of recession it is pretty easy to soak up the extra capacity with a little monetary stimulation. But, if instead the recession is caused by excess capacity, and if there is enough of it, then the only way to stimulate enough demand to soak up the excess capacity is with tools which we have not used before, and the effects may not be entirely predictable. (For instance the Japanese are talking about giving everyone a $260 coupon which expires if not spent by a certain date.) I am not saying this is true, but it might be, and thus I am not as confident as I would otherwise be that the drop in interest rates is going to have the same effect as it used to. Clark