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

To: Mike M2 who wrote (60776)	5/26/1999 3:53:00 PM
From: BGR	Respond to of 132070

Mike, I will the first to admit that Economics is not an exact science as mathematics for example (Bakunin, take note :-)). But, I think that it is important to have all opposing POVs in view. -BGR.

To: Mike M2 who wrote (60776)	5/26/1999 4:48:00 PM
From: Freedom Fighter	Read Replies (1) \| Respond to of 132070

Mike, I think one of the things that throws many economists and investors off is that they fail to realize that with a system of fiat credit you can temporarily distort the free market relationship between savings, investment, interest rates, return on investment, and asset values. So when they discount a distorted snapshot of inputs they come to "new era" valuation conclusions that make perfect sense under the assumption of a continuation of the prevailing distortion. But that distortion eventually gets removed from the system and equilibrium gets returned. That's why our system works. In this cycle the prevailing conditions abroad have served to extend and feed that distortion. In addition, the Fed, Treasury Dept., IMF and other central bankers have been working feverishly to avoid facing equilibrium right now. Perhaps it's a timing thing, perhaps they are irresponsible, perhaps they are incompetent, perhaps it's pure politics, perhaps they don't think it's their job to make bubble determinations, but I don't think they disagree. Lastly, much of Wall St. and corporate America has behaved irresponsibly in promoting the excess for their own short term profit, IPOs, stock options etc... Some may also be taking advantage of "this Fed's" willingness to bail them out. Combine all this with public ignorance and you get one dooozy of a bubble. Then again you know all this! <g> Wayne