Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Path: utzoo!lsuc!dave From: dave@lsuc.UUCP Newsgroups: can.politics Subject: Re: market crash Message-ID: <2107@lsuc.UUCP> Date: Tue, 27-Oct-87 11:16:26 EST Article-I.D.: lsuc.2107 Posted: Tue Oct 27 11:16:26 1987 Date-Received: Thu, 29-Oct-87 01:09:54 EST References: <167@bby-bc.UUCP> <1060@looking.UUCP> <1987Oct21.225842.18695@gpu.utcs.toronto.edu> Reply-To: dave@lsuc.UUCP (David Sherman) Distribution: can Organization: Law Society of Upper Canada, Toronto Lines: 23 Summary: market does affect the economy In article taras@gpu.utcs.UUCP (T. Pryjma) writes: > >I just wish people would stop attributing too much significance to what >the stock market is doing on any given day. > >It is interesting as a study of herd instinct, but that is about it. I must disagree on this. When the crash wiped out people's profits, it took a lot of purchasing power with it. We're not going to buy that second car now, or as quickly make other major purchases which we'd been contemplating. The overall effect on the economy may be serious. Furthermore, new issues have suddenly gone dead. That has serious implications for companies planning expansion. If you can't raise the equity because no-one is buying, you don't expand. And that sure affects the economy. David Sherman The Law Society of Upper Canada -- { uunet!mnetor pyramid!utai decvax!utcsri ihnp4!utzoo } !lsuc!dave Pronounce it ell-ess-you-see, please...