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Strategies & Market Trends : The New Economy and its Winners

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To: Lizzie Tudor who wrote (21441)7/23/2004 4:00:21 PM
From: Oeconomicus  Read Replies (3) of 57684
 
- dollar vs. foreign currency valuation much MUCH less favorable now than 90s

Do you not understand that a lower value of the dollar makes US producers MORE competitive, imports (including imports of "outsourced" services) LESS competitive, and income of foreign operations of US businesses HIGHER in dollar terms? These are all good things.

- inflation now, nonexistant in the 90s (we thought we had this LICKED)

Perhaps you should look at the data.
search.netscape.com

- wage deflation big time, means no purchasing power for individual shareholders

Hmm. Again, you should check the data. Real average hourly earnings of US workers are well ahead of 1999-2000 levels and though they've been relatively flat the last two years, it takes real imagination to describe it as "wage deflation big time." bls.gov

- the future looks dim not bright (related to above)

Your perspective is clouded by 1) your narrow focus on tech sectors that may never recover to the levels of employment or sales, never mind valuations, they achieved during the bubble days; and 2) your political views that seem driven by your belief that the bubble days represented a healthy, sustainable economic environment. For you, the glass will be half empty until a Democrat wins the White House.
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