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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.60+1.5%3:59 PM EST
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To: Sarmad Y. Hermiz who wrote (121536)3/24/2001 4:48:54 PM
From: GST  Read Replies (2) of 164684
 
Sarmad: "Supposedly the US recession is caused by excess capital investment" Not so. Capital investment in and of itself does not cause recessions -- this one or any one. Recession can be triggered by unproductive investment. Productivity increases had led many to hope that we would not have recession so long as productivity was improving. But we hit the wall when hundreds of billions went into unproductive and profit-less internet and internet infrastructure investments. That helped to stall the economy. Rising energy prices were another big factor. Interest rates were rising in an attempt to head-off the economic distortions associated indirectly with the stock bubble.
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