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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: hedgeclipper who wrote (42162)8/6/2004 9:42:59 AM
From: mahler_one  Read Replies (2) of 42804
 
Hi Hedge: Don't have to be any genius to see that todays jobs numbers when added to the downward revisions of the past few months adds up to some unrelenting downward pressure on the stock markets. Judging from the very sudden and precipitous decline in the last hour or so yesterday I wonder if the numbers were expected by some.

At any rate, the saving grace could be a change in the Fed tightening scenario...but one wonders if even the Fed is running out of explanations and remedies. There could well be some permanent changes in the economic paradigm under which the US functioned for the past 50 years. Outsourcing, (the tremendous emphasis on education outside of the US leads to the draining of our technical jobs at an ever increasing pace while our educational system "dumbs down" to the lowest common denominator is an emerging explanation-and of course, we pay the foreign scientists and engineers much less ), productivity gains ( removes the pressure to add jobs in an expansion ), the costs of energy, the anxiety of terrorism....I am sure you could name some others. What is remarkable still is that unemployment in the US remains quite low by historical standards. So....where are those jobs coming from? I must admit to being mystified by the counter currents and swirl of economic "measurements " that seem to be released and interpreted on a daily level.

One wag, with tongue in cheek, urged the US to quickly increase the pace of providing our TV programming to the rest of the world. Within a few years the Indians and Chinese students would be eating Frito Lays, studying much less, concentrating on being like Mike, and dreaming about Nike sneakers. They would quickly start to gain weight, and their health costs would soar. The work force would start to soften... presto....outsourcing would decline, skirts would shorten...you can guess the rest....


m1
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