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

To: BGR who wrote (60269)	5/26/1999 2:26:00 PM
From: Mike M2	Read Replies (1) \| Respond to of 132070

BGR, I do think extending the Asian scenario to the U.S. is appropriate . See Barron's 5/24/99 Market Watch section for an excerpt from Dr. Kurt Richebacher's May issue. " What distinguishes a 'bubble economy' ? It regularly develops four decisive features: first money and credit expand vastly in excess of both savings and GDP growth; second inflationary pressures are channeled to and concentrated in asset prices; third, low or falling consumer and producer price inflation keep monetary policy too loose; fourth, soaring asset prices overstimulate domestic borrowing and spending. All four features were strikingly evident in the late 1920s in the U.S. and, in the late 80s in Japan. And all four have been strikingly evident again in the US since 1996. In his Sept. 96 and March 97 he forecast the collapse of the SEA bubble at a time when most saw SEA as an economic miracle. The usual bubble pattern is easy money leads to excessive investment in industrial plant and equipment and sometimes real estate. In the US the easy money has fueled excessive consumption and speculation. Richebacher Letter 1217 St. Paul St Baltimore, MD 21202 Mike