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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?


To: Frodo Baxter who wrote (689)12/13/1998 1:41:00 AM
From: Mark Adams  Read Replies (1) | Respond to of 2794
 
You make valid comments, as usual. However, you might want to do a search on the phrase 'Pushing on a string'. That is what the FED does when trying to stimulate demand via lower rates.

The rats in the maze might just shove that extra money into equities, driving stock prices higher, rather than buying a new hdtv. Money into equities isn't getting the same multiplier effect that producing real products would. Thats my thesis.

And yes, deflation and depression, if they occur, will be the result of unbanlanced income distribution, not that I should complain. We can see this is true just by looking to see people going hungry in indonesia, while corporate leaders complain about too much capacity.

So you and I are too rich, and some people in other countries are too poor. Now you can call me a socialist if you like.

BTW- I am/was a Milton Friedman fan, but then I don't have a closed mind. Fiscal policy is the only choice here. Shame that responsible implementation of it is so difficult to come by.