Re: The Wheel of Economics

"*_//B_//B*" <*TheAngel*@[EMAIL PROTECTED]
> wrote in message
news:4885bca2$1_2@[EMAIL PROTECTED]
> "*_//B_//B*" <*TheAngel*@[EMAIL PROTECTED]
> wrote in message 
> news:487e45dc_4@[EMAIL PROTECTED]
>> *Over Confidence* =  *The Extreme Boom*
>>
>> ~Over Fear~           =  ~The Extreme Bust~
>>
>> IS about Maintaining:
>>
>> *THE BALANCE*
>>
>> between *Boom* and ~Bust~
>>
>> And not giving in to:
>>
>> ~THE IMBALANCE~
>>
>> of *Boom* and ~Bust~
>>
> e.g.
>
> At the onset of a Housing Market
> Boom, you put Interest Rates up
> to stop 'Over Borrowing' &, at the
> onset of a Housing Market Slump
> you lower Interest Rates to stop
> 'Under Borrowing'.
>
> Over Lending/Borrowing, unchecked,
> leads to a Credit Crunch.
>
> Under Lending/Borrowing, unchecked,
> leads to a Credit Glut.
>
> Higher House Prices = Higher Borrowing
> Lower House Prices = Lower Borrowing
>
> Any Economy needs 'Constant Monitoring'
> & adjusting where necessary to prevent the
> Negative effects of *Boom* and ~Bust~.
>
> Halleluja
>
> Amen