Re: [A-List] "The Late '90s Never Happened"

["Annewilliamson" <Annewilliamson@xxxxxxx>]

Try studying Mises's explanation of the business cycle, i.e., massive credit
and monetary expansion always leads to malinvestments that must be
cleared. -A

----- Original Message -----
From: "Max Sawicky" <sawicky@xxxxxxxxxx>
To: <a-list@xxxxxxxxxxxxxxxxxxx>
Sent: Friday, October 25, 2002 5:17 PM
Subject: RE: [A-List] "The Late '90s Never Happened"


> An unemployment rate of 3.9 percent happened, with or without
> hindsight.  Corporate earnings misstatements do not erase that
> fact.
>
> It makes sense that at some prior period, the process leading
> up to a state of overproduction or excess capacity would have
> generated tight labor markets and rising wages.
>
> I think we could say you need a period of good times in order
> for an economy to get into trouble.
>
> mbs
>
>
>
> As one economist pithily put it, "What it means is that with the benefit
> of hindsight, the late `90s never happened."  Were one to take into
> account the earnings of these same companies over the year or so since
> the study was completed, as well as to adjust for the overstatements of
> profits by many of them, the trajectory would likely appear
> significantly worse. . . .
>
>
>
>