Message: 2
Date: Sun, 03 Dec 2000 23:34:52 +1000
From: Rob Schaap <[EMAIL PROTECTED]>
To: [EMAIL PROTECTED]
CC: [EMAIL PROTECTED]
Subject: [CrashList] Re: [PEN-L:5406] the downturn
Reply-To: [EMAIL PROTECTED]

Quoth Michael P.:

>Each day, I am seeing more signs of a downturn.  I am fairly convinced
>that it is real.  Jim D. keeps referring to a Godley-like scenario, which
>seems to make sense.  My question is whether it can unravel into a
>full-blown disaster.  I am not confident one way or another.  I would
>appreciate any feedback that you might have.

Well, even at its healthiest, capitalism has its casualties and growing
pains, but then, there are a lot of those around     just at present.  The 
bulls would have their work cut out arguing the insignificance of the stuff 
Pen-L, Crash-L and the finance press have been telling me of late.  To wit 
(and these are but a sample):

- investment banks exposed to seriously rotten junk bonds;

- record defaults in the US, and tighter lending policy ensuing;

- US spending outpacing US personal income (prior to the latest crop of
margin calls,. at least);

(clip)

Sayeth Seth,

To Rob's dour list, add this:

- the Clinton-Gore adminstration's reforming (ending) of guaranteed federal 
cash payments to poor people.  More welfare reform from the suites, more 
people living on the streets.

Seth Sandronsky
Sacramento
[EMAIL PROTECTED]


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