FRANKFURT, Germany - Former German Chancellor Helmut Schmidt said in remarks published Sunday that U.S. share prices were being driven to unsustainable heights by ''psychopaths'' on Wall Street and that a slump was inevitable.

Schmidt told Welt am Sonntag newspaper that the United States, despite being presented as a shining economic example to Germany, had a private savings ratio below zero and was creating an underclass of the working poor.

``Many people are enthusiastic about the United States at the moment. But people don't realize that the share price boom is totally overvalued and that psychopaths are driving the prices up,'' said the Social Democrat who was West German chancellor from 1974-1982.

``It's only a matter of time before the boom ends and prices tumble down again -- just as it happened in Japan,'' he said.

Schmidt, 80, said that by psychopaths he was referring to ''the young 30-year-old dealers and 40-year-old fund managers who with their daily and hourly fund allocations have no other aim than to get the best possible performance.''

``These people lack an overview of the world and world economy and also of the responsibility that entails.''

Schmidt added the euro's depreciation by as much as 15 percent this year did not signify that the new currency was weak. He said he had witnessed the dollar trading at 3.47 marks and at 1.36 marks in the space of 1-1/2 years.

``No one ever got the idea that that meant the mark was weak,'' he said.

Diese Menschen aus Wall Street sind aber ganz ver|kt! Langsamer aber sicher Alles will kaputt sein! Yawohl!

Ya gotta laff!!!

-- Andy (2000EOD@prodigy.net), August 02, 1999

Answers

It is GREAT to hear someone else called a "psychopath" for a change!

But you know, Schmidt is exactly right in at least one area. My wife and I had a friend (former babysitter) who recently married the head of the derivatives division for Con-Agra (a large agicultural commodities firm). He makes "well" into 6 figures. I made one mention of Y2K to the new couple and they literally laughed in my face, in fact the man muttered "idiot" as he walked away from me.

Since then they turn away when they see me coming (really, I only said "What do you think about Y2K?). But knowing a little bit about the husband --- he is exactly as Schmidt described. A 30 year old man who got out of college, worked a few years for Con-Agra and got this job (I forgot to mention that his father was one of the founders of Con-Agra). He is CLUELESS to any real world problems: 'nothing can go wrong, we are headed to prosperity (for the chosen anyway) for-ever'. 'Theres nothing to life but making money and enjoying it, the rest of you are fools'. Yes hes making money now, but its ALL on speculation that the good times are here to stay.

From my experience, another example of the condition we are in: beautifully set up for a major fall --- just not sure when .... Isn't there something happening around 1/1/2000?

-- Jon Johnson (narnia4@usa.net), August 02, 1999.

Jon- You know what they say about a fool and his money. Have a Coke and a smile!

-- Gia (laureltree7@hotmail.com), August 02, 1999.

Jon,

Your acquaintance reminds me of the son of the boss who, upon graduation from Tulane, moved into the firm as VP. He was very full of himself, dressed to the GQ hilt, apartment in a very rendy part of town, Beemer, and so on. He was paid a salary and a 10 percent commission for selling political advertising to the media. I saw him working out his commission on his calculator one day, and said, "If you just move the decimal point. . ." He wouldn't believe me until he checked it on his calculator and acted as if he had just discovered sliced bread. Amazing! How can you get through four years of college. . .

-- Old Git (anon@spamproblems.com), August 02, 1999.