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Pastimes : DOW 36000 - Glassman and Hassett

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To: Sid Turtlman who wrote (20)12/5/1999 7:52:00 PM
From: Clouseau  Read Replies (1) of 42
 
Sid - Thanks for your response..Your points about feedback loops in the economy cause me to recall dimly a course taken once upon a way long time ago which reviewed Jay Forrester's early work in Industrial Dynamics)...it was fascinating!

The hyper move in the stock market is arguably narrow - (57% of S+P stocks down YTD). Mostly tech/internet stocks going nuts. So - lets assume they soon reach 'equilibrium', or diminishing returns, when there is too much competition among them and profits (thought to be coming) do not materialize. Then, the bubble in that 'sector' bursts? Drags everything with??

Naz could drop dramatically by simply shaving Market Cap off the top market cap 'winners' (which in many cases have no earnings). But would it kill the whole economy?

Dave
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