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Technology Stocks : Intel Corporation (INTC)
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To: Jim McMannis who wrote (130929)3/27/2001 3:12:32 AM
From: Amy J  Read Replies (1) of 186894
 
Hi Jim, GV's article articulates the concern, I'll paraphrase:

Adjusting interest rates may not work

The normal fix may not work

The Economist's article makes it clear that this is unchartered territory for the US since 1945:

All recessions since 1945 have been "interest rate induced recessions courtesy of the Feds." Thus, interest rate adjustments could get us out of any recession after 1945. (ALL is significant).

Interest rates fixed an "interest rate induced recession."

Interest rates fixed everything after 1945.

However, prior to 1945, the normal USA business cycle was an "investment bust induced recession" where interest rates do not have an impact.

That's a concern to me because our normal fix won't work, which is why I asked GV how do they fix an investment bust induced recession, which was the USA's normal type of business cycle prior to 1945? Liquidity?

The average inv-induced recession lasted 22 months. No wonder I read that Intel put a fab on hold until 2002.

RE: "Wait a few months for the dust to settle."

I'm assuming this could last 2 years.

RE: "In the mean time don't stop with the development end."

Heavens no. Of course not.

I don't think a big company can fight the economy, where enormous volume is the game, but I think a startup can fight it, especially one that's starting out.

Regards,
Amy J
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