Re: Re: Re: Re: Re: Re: beginning of the end?

[Dennis Robert Redmond <dredmond@xxxxxxx>]

On Sat, 14 Oct 2000, Peter Dorman wrote:

> secure; they were the targets of subsequent runs.  Is there some way
> to think about the pricking of the dollar bubble in the absence of
> resurgent confidence in some other currency?

Sure -- vigorous expansion in the EU and East Asia, which would pull in
lots of US exports and allow a non-crash-inducing adjustment of the US
current account balance. And don't forget, the Eurobourgies and their
Asian equivalents already staged two of the most massive bailouts in world
history in the 1990s: (1) 500 billion EUR for Eastern Germany/Eastern
Europe, and assorted EU banks; and (2) maybe 750 billion EUR for SE Asia,
plus assorted Japanese banks. Bubble speculation is the flip side of
bailout Keynesianism.

-- Dennis