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Technology Stocks : Intel Corporation (INTC)
INTC 46.48-3.6%3:59 PM EST

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To: vinod Khurana who wrote (30596)8/28/1997 11:38:00 AM
From: Tunica Albuginea   of 186894
 
Vinod, Re: <<.more people employed = more demand for products
= higher inflation = higher interest rates = lower lower bond prices = lower stock
prices = INTC hitting $85.>>. I would like to disagree with that equation.

The last 15 years have clearly shown THAT EMPLOYERS/MANUFACTURERS CANNOT/WILL NOT
pass increased costs to consumers simply because cosumers have shown that they
WILL NOT pay those costs. Instead they will buy Japanese or do business
with FedEx; So what have employers been doing the last 15 years in
the face of mounting wageprssures; They lay people off; downsize;move
to Malaysia ( typical example is GM: the stock is going up because they will do
60% of their manufacturing overseas, from current 30%.nd UPS will make
15000 temporary works full time at higher wages and at the same time
lay off 15000 people. So I don't see inflation.The next place Americans
IMHO will look for a wage increase will be in the next election where they will
continue to ask for the government to give them more of their paycheck
back and let them manage their own helth and charitable( read wefare/entitlement)
donations, in a more efficient way.The word for Big Government is,
you have to go on a diet buddy. And, as you are want to say, I say to
Uncle Sam, " good luck pal " and long livr Intel.

TA
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