Thanks to improved communications, we live in an age where the Media and the Analysts/Reporters are able to manipulate public opinion at lib.
The media continues to hype productivity gains made. Sure there are big gains in productivity in the so called established Industries. The smallest gains in productivity is in the new Economy non-manufacture sector. How many of us have faced innumerable delay and lost time due to Computer glitches, breakdowns, loss of connections and wait time downloading and uploading, Service calls, Call wait etc. Then you have the Computer program foul ups that never end. That in brief is the state of productivity in the new Economy. What used to be rework is now termed update.
Last year we were flooded with the Y2K doomsday gloom and doom. In addition,when it came to Oil, we were told that OPEC was finished and they had lost their clout etc etc.
This year we have a new gimmick. Suddenly out of the blue thanks to Greenspan's threats of interest rate hikes, the Market discovered a new lingo viz Old Economy stocks and New Economy stocks. These same stocks be it Technology or Biotech existed in 98 and 99. Suddenly in 2000, they became
new Economy stocks. The New Economy stocks are now the Engines driving the American economy. They are supposedly not dependent on Capital or old Economy requisites.
This is utter nonsense and a manipulation of public opinion.
If this were true, why are the Govt and public up in arms as Oil prices go higher. They should not be if they truely believe in the New Economy.
The main transport providers of the New Economy are the TELCOS vis T,SBC,WCOM and others. The so called new Economy cannot exists without these Companies. Yet the stock prices of these info-bit carriers are at their low. This clearly shows that the New Economy terminology is a myth since the backbone is treated differently from its many users.
I believe that in time (6 mths) the market media will revert to normality. If that does not happen, the Oil Producers & others are more than entitled to higher Oil prices.
Good luck in the Oil patch. |
