Cisco Systems, Inc. (CSCO) Message Board

STOCKTALK

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 : Cisco Systems, Inc. (CSCO)

CSCO 78.03

0.0%

Dec 24 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Steve who wrote (49032)	2/17/2001 2:40:37 PM
From: Wyätt Gwyön	Read Replies (1) of 77400

re: Japan, you are missing the forest for the trees. Each situation is unique. Their bubble was tied up more with cross-holdings and using inflated land prices in place of cash flows as loan securitization, in an ever-escalating episode of Ponzi Finance. Works great till it no longer works. Our bubble is based on massive credit expansion for TMT investment, with similar Ponzi Finance of telcos and dotcoms fueling unsustainable capital expenditures. Similar to Japan, much malinvestment. In japan, that might be a billion-dollar project to mine a mountain tunnel between two villages with population of 3000. In US, that might be 3 billion flushed down toilet of some useless dotcom co, multiplied by many such instances. These cos., which have no economic right to exist, use their fulsome purses to grow demand for capex. Equipment makers expand capacity and excite equity investors. Rising prices excites more money into game, leading to more capex and more capacity expansion ad infinitum. Again, works as long as it works, then don't work no more. That is the epitaph of all Ponzi Finance bubbles.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next