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<DIV>Hi Dan,</DIV>
<DIV> </DIV>
<DIV>I suspect the Fed. will put our economy first. While it is true that,
at times, they will support foreign economies, they will only do so when the
American economy will permit it. Also, don't forget, we have an election
coming up.</DIV>
<DIV> </DIV>
<DIV>
Good luck and good
trading,</DIV>
<DIV> </DIV>
<DIV>
Ray Raffurty</DIV>
<BLOCKQUOTE
style="BORDER-LEFT: #000000 2px solid; MARGIN-LEFT: 5px; MARGIN-RIGHT: 0px; PADDING-LEFT: 5px; PADDING-RIGHT: 0px">
<DIV style="FONT: 10pt arial">----- Original Message ----- </DIV>
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black"><B>From:</B>
<A href="mailto:dan@xxxxxxxxxxxxxxxxx"; title=dan@xxxxxxxxxxxxxxxxx>Dan
Chesler</A> </DIV>
<DIV style="FONT: 10pt arial"><B>To:</B> <A
href="mailto:realtraders@xxxxxxxxxxxx"; title=realtraders@xxxxxxxxxxxx>Real
Traders List</A> </DIV>
<DIV style="FONT: 10pt arial"><B>Sent:</B> Monday, August 02, 1999 5:26
PM</DIV>
<DIV style="FONT: 10pt arial"><B>Subject:</B> econ101</DIV>
<DIV><BR></DIV>
<DIV>What if it turns out that the Fed now has a more serious question to
face;<BR>an overheated domestic economy with signs of nascent inflation just
as the<BR>economies of (asia, russia, latin america) go in the tank
again.<BR><BR>Will the Fed print money faster, or will they say the party's
over, you're<BR>on your own, we can't wreck our economy so that you don't have
to face your<BR>own structural
problems?<BR><BR>Comments?</DIV></BLOCKQUOTE></BODY></HTML>
</x-html>From ???@??? Mon Aug 02 19:37:22 1999
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From: "BruceB" <bruceb@xxxxxxxxxxxxx>
To: <terese2@xxxxxxxxxxxxx>, <realtraders@xxxxxxxxxxxx>
References: <19998219161241@xxxxxxxxxxxxx>
Subject: Re: Econ101
Date: Mon, 2 Aug 1999 21:11:37 -0400
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Status:
Schumpeter's principle of creative destruction basically says that in order
for an economy to grow and for living standards to improve, both the
business sector and government must let obsolete companies and even entire
industries fail, in order to free up resources which can then be invested in
new industries.
The most visible way to see creative destruction in action is to look at the
unemployment numbers. For several years now, the number of newly unemployed
persons in any given month has been very high, and yet the overall
unemployment rate has been falling at the same time. This tells us that
workers are being let go from failing industries and being rehired by newer,
growing companies that need the manpower. It's not always this simple.
People can be let go from a perfectly healthy company simply because that
firm has made significant capital investments and is now much more
productive (and therefore needs newer workers), but you get the idea.
I didn't see the NYT article about Japan, but I bet they were commenting on
how their society/business sector/government has simply refused to let
inefficient companies fail, and therefore the workforces of stagnant
industries have remained artificially high, which stifles the creative
process. They seem to have reach the level of economic pain, however, where
that is beginning to change...
Bruce
----- Original Message -----
From: <terese2@xxxxxxxxxxxxx>
To: <realtraders@xxxxxxxxxxxx>
Sent: Monday, August 02, 1999 8:14 PM
Subject: Econ101
> I just finished reading the Sunday New York Times article about Japan's
economy. Very interesting
> reading but what is Schumpeters "creative destruction"? Is it the high
speed of market
> deterioration with respect to ..........???? Is it the redistribution of
capital?
> any comments appreciated
> Terese
>
>
>
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