SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 174.01-0.3%Nov 14 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Haim R. Branisteanu who wrote (71558)5/5/2000 9:12:00 PM
From: r.edwards  Read Replies (1) of 152472
 
Asset values rise because of scarcity,... given a constant, or rising demand.
Productivity alleviates scarcity in various goods or services by allowing more output to satisfy the increased wealth effect generated spending demand.

Therefore, the only truly inflationary assets are those which will continue to have an ongoing demand with a constant marginal level of increase in scarcity. i.e.( gas/oil),(more food can be grown, lumber produced etc...)

The fed is not focusing on true demand vs scarcity scenarios, but is instead focusing on slowing a robust increasingly productive economy and the well being it generates.
It has done this by raising the Price of money.
Greenspan will not raise too much because the foreign C. mkts will not tolerate the capital outflow to the US.
Capital is abundant both in equity and debt forms, making the Feds actions very elastic when the various world wide sources of capital are considered.
We the stock owners /sellers may sit on our hands, or we may buy, I think it is very interesting.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext