Buying opportunity

[Brad DeLong]

>Brad Mayer wrote:
>
>>(Is the "new economy" really new?)
>>
>>"One observer who demands attention thinks not.  Larry Summers, who 
>>has just retired as Americas' Treasury secretary, has recently 
>>argued that Americas' current cycle is fundamentally different from 
>>its postwar predecessors - though not because it is "new". He 
>>argues that it has more in common with economic cycles as they 
>>worked before the second world war - or even, wait for it, with 
>>Japans' during the late 1980's.  This is a comparison he thought it 
>>unwise to draw while still in office. Mr. Summers still hopes that 
>>a recession will be avoided in America.  But if he is right about 
>>how things work, predictions based on orthodox business cycle 
>>calculations are of little use."
>
>Hey, he stole this from me!
>
>One way this cycle is different from most post-WW II downturns is 
>that financial disruptions contributed to it. In that, it's sort of 
>like the early-90s recession, except that one was caused by a credit 
>crunch following the implosion of the junk bond market, the S&Ls, 
>the LBO mania, etc. This one got started by the collapse of the 
>IPO/Nasdaq mania.
>
>Doug

He did not! ("Liquidation Cycles: Old Fashioned Real Business Cycle 
Theory and the Great Depression," 1990, 
http://www.j-bradford-delong.net/pdf_files/Liquidation_Cycles.pdf).

But it is a good idea, isn't it? Unfortunately I have no idea whether 
or not it is true...

Brad DeLong