Re: [OPE-L] fictitious capital and junk bonds?

From: Gerald_A_Levy@MSN.COM
Date: Sat May 07 2005 - 10:21:57 EDT

> I think huge government deficit is causing problems in credit market.

Hi Alejandro:

What kind of problems?  The 'crowding-out effect'?

Don't we have some historical experience to show that increasing
budget deficits are compatible (for, at least, an extended period of
time) with increase accumulation of capital and economic growth?

In any event, it's not the _government_ bonds which have
turned to junk.

In solidarity, Jerry

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