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Technology Stocks : Wind River going up, up, up!
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To: Peter Church who wrote (8710)10/25/2000 2:26:44 PM
From: Allen Benn   of 10309
 
Gold is no longer an indicator of inflation, and has not been for years. Inflation is not at issue today, but it was just a few short months ago. The ghost of inflation is what all the central bankers have fighting for the last couple of years.

And why do you say recessions are not caused by central bankers? Greenspan engineered the 1987 crash and the follow-on 1990 recession. On the positive side, he prevented the 1987 crash from mushrooming into a full-blown depression – which at the time most investors expected. As the extreme example, the great depression was thought to be exacerbated, if not caused, by improper monetary policy.

The risk central bankers face when they clamp down on economies is that they may overplay their hands and cause recession. What makes the risk real is the time lag between policy changes and when they are felt in the economy. However, Greenspan’s pragmatic recent responses to the Asian Crisis, the LTCM fiasco and the Y2K threat suggest he will not stand idly by while the U.S. economy tanks.

If we set recession aside, then your concerns are sector specific. These are just bumps in the road for sectors on the right side of technology being revolutionized. They are catastrophic for sectors being trampled in the process.

Allen
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