What are the implications of the international debt situation?
GALBRAITH: There are differences from 1929 in the international picture, two of which are of prime importance. In 1929, we were a creditor nation, not a debtor nation, so we were not subject to the uncertainty of people in other countries who combined their fear of what might happen to the stock market or real estate investments with their fear of what might happen to the dollar. There is a double uncertainty there, some of which was manifested on October 19, 1987. Secondly, there is now a much heavier burden of international debt. There was a substantial burden in 1929, both that of Latin America and also the so- called war debts, but the international indebtedness is much more serious now and is something on which there needs to be immediate action. And that means a massive write-down. MM: Is there a risk of an international banking crisis? GALBRAITH: Could there be a run on the international banks that would shove them under? MM: Or some kind of shock which works itself through the
