As I see it.........
Mr Greenspan has done a masterful job, bringing inplied control and human element to a totally
mindless market. ( and having 70% of imvestors money going to techs was mindless)
Our economy depends on the flow of money throughout the population (Japanese banks, in comparison, stole every Yen, leaving out the individuals) Considering the sales of autos, homes, and the level of consumer spending, I see nothing to indicate a major recession.
Unemployment was bound to rise, as companies faced belt tightening and were forced to implement efficiences.
Efficiences call for more use of robots in building cars, less business travel and more videoconferencing.
Florescent lighting in hotels, more efficient buildings, less power consumption by computers and servers.
It also calls for more offshore production of American designs where labor is cheaper and the US
requires fewer production laborers and but more designers (and movie or game makers) (G)
.
The bears have been on a two year binge, ridiculing and downgrading the techs. Some was well deserved,
but the tech revolution has barely begun and bears will have to adjust and learn some new tunes.
Summary:
Things not as bad as they seem.In only one year the comparison of 2002 earnings to 2001 earnings is going to be outstanding , especially considering the one-time writeoff of billions by companies this year plus an accumulation of tax benefits (losses carried forward)
Perhaps even Cpq or Gtw can make money!!!
Sig |
