Truflette! Long time no see....from good old days.....Nice article. We are indeed...
pushing on a string...
wsj.com
as Gilder sees in
....others sustained the previous hybrid build-out of optics, cable and cellular, similar debt issues are crucial to the new infrastructure of all-optical networking. But there ends the similarity with the previous build-out, which emerged during a time of real supply-side tax cuts, OPEC tax collapse, deregulation, and general monetary stability, and was vindicated by soaring cash flows and equity valuations. By contrast, the far more promising new infrastructure is withering in the face of monetary, tax and regulatory blunders.
For debt-burdened companies, nothing is so oppressive as deflation -- a dearth of money -- which inflicts soaring real interest burdens, sinking asset values, and collapsing growth. The leaders of the telecosm have to pay off debt in appreciating dollars while cash flow and collateral declines, and banks deny the kinds of rollovers that saved the likes of MCI in the 1980s. Real interest rates are now drifting upward faster than the Federal Reserve can reduce them
.......
BTW, many Republicans are the same as Democrats
cheers. Different dress, same cloth,
TA |
