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Biotech / Medical : Biotech Valuation
CRSP 51.11-2.1%3:59 PM EST

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To: Ian@SI who wrote (6895)8/14/2002 4:52:38 AM
From: LLCF  Read Replies (1) of 52153
 
<With capacity utilization near a multi-decade low at about 76%, the odds of inflation are substantially reduced. Any company attempting to raise prices will simply lose market share.>

Ian,

In a global economy 'prices' are not necessarily dictated only by our stucture. Any imported sectors could see prices up simply due to a fall in the $US.

The US has been running current account deficits approaching 2 Billion a day, financed by foreigners. Every % fall in the dollar is a reduction [increase] in their returns [losses].. and remember that's the needed FUNDING just to keep the $US stable... let alone the possibility of a reversal! Meanwhile the Fed has been growing money supply like nuts. The only question is how fast the dollar will fall, how far, and what will be the ultimate ramifications IMO.

It is more than simply possible that prices & rates could GO UP regardless of what the fed does while the markets continue going down with the economy. Foreigners own Trillions in bonds and stocks.

DAK
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