<html><body> <DIV>So true. That is why they used to -before the 1930s anyway- call recessions "panics." SR</DIV> <DIV> </DIV> <BLOCKQUOTE style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #1010ff 2px solid">-------------- Original message -------------- <BR><BR>> <BR>> But it's not just telling you how people "tick": if everybody thinks a <BR>> bank is going to fail and they draw out their money--the bank will fail! <BR>> This gloominess can have real, material effects. That's a strange <BR>> thing about economic issues: if enough people perceive a certain <BR>> economic reality, and then act on the basis of that perception, they <BR>> can bring about the state of affairs they perceived--even if it was <BR>> originally a misperception! <BR>> <BR>> Miles <BR>> ___________________________________ <BR>> http://mailman.lbo-talk.org/mailman/listinfo/lbo-talk </BLOCKQUOTE></body></html>