Harry, You're incorrect about the stock mkt having no affect on the economy. Now that 60% (fr. memory) of US families are in the mkt, the wealth affect (both psychol. & real) influences spending behaviour.
Also, there are cross holdings (not to the extent of Japan) in corporate pension plans which affect the amount of contributions needed yearly to match the payout needs and actuarial expectations. In mkt boom times, money gets diverted to R&D, bonuses, expansion/devel/capital equip. etc. In bear mkts., the flow available to non-pension areas slows down. Universities, foundations, and other non-profits like museums, operas, symphonies...also feel the pinch as endowments shrink and donations slacken. They thus cut employment costs and expansion. The financial services industries cut back employment and compensation as trading volumes drop and as insurance and annuity purchases slow due to feedback loops. Your claim is totally absurd, in my opinion. Steve -- http://magma.ca/~gpco/ http://www.scientists4pr.org/ Anyone who believes exponential growth can go on forever in a finite world is either a madman or an economist.�Kenneth Boulding
