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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (51940)	3/15/1999 9:33:00 AM
From: Earlie	Read Replies (2) \| Respond to of 132070

Earlie from Earlie: A comment to all posters on this thread. If you read nothing all year long, please read Warren Buffet's letter to his shareholders. Aside from being the world's most successful investor, he is also one of the most honest and down-to-earth men I have ever read. His comments on the accounting scams reads much like what is posted here by many of us. His views on the current market are almost an exact copy of what is presented on this thread. His scathing disgust for the options scam that MB, myself, Fleck, Bill Parish and others have expounded on, is almost palpable. Something else that is enjoyable about Buffett's writing style is that it is both humorous and easily understood, something we all strive for. I commend this to anyone who has exposure to this market. On another topic, Boeing just announced another massive lay-off. I stopped counting a while back, but if I remember correctly, this brings announced lay-offs at Boeing to over 50,000. Each job loss at Boeing equates with 4 in related industries. The West coast economy is being further gutted. Anybody who thinks that the Asian crisis won't or doesn't impact the U.S. is living on Mars. Deflation at work. Best, Earlie

To: valueminded who wrote (51940)	3/15/1999 11:40:00 AM
From: Mike M2	Respond to of 132070

Chris, the focus on consumption is Keynesian economics which is the wrong focus according to the Austrian school. The Austrians predicted correctly that the Keynesian policies of the 60s -70s would lead to stagflation- see Hayek's " Tiger by the Tail - the Legacy of Keynsian Economics". Inflation of money and credit distorts the demand and output structure of the economy -in asia we have excess capacity in US we have excess consumption based upon debt and the wealth effect of the stock market. It is worth noting that Austrian economics is the only school which sees the excesses ( debt & capacity)during the boom as the cause of the bust. The Austrians saw it in the 20's , they saw in in Japan and SEA, they see it coming here in the US - sorry no timeframe. The bust is inevitable the timing of the bust is difficult. The Austrians would also argue that attempts to reflate after the bust only delay the liquidation necessary for the economy to heal. In Jim Davidson's and lord Rees Mogg's book "The Great Reckoning" they refer to deflation as delayed compensation for inflation. Mike

To: valueminded who wrote (51940)	3/15/1999 12:04:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

Chris, In my coin flip, I give inflation the edge over deflation and the current walking the tightwire no chance at all. Yes, the difference between debtor and creditor, importer and exporter, does make a difference. However, the wave sweeping the world has been deflationary, not inflationary. So, I think we are faced with Fortress America and inflation, or Global America and deflation. I think the former is slightly more likely. MB