SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: ild who wrote (44780)11/4/2005 4:19:38 PM
From: Chaka  Read Replies (1) of 110194
 
Steven Saville has pointed out ( as i have done previously ) that an excellent example of monetary inflation misdirecting resources is the millions of miles of fibre-optic cable that were laid during the telecom boom. 98% of this fibre-optic capacity remains unlit to this day. enormous amounts of resources were squandered on this white elephant,

I agree with many of Heinz's points but this one is not a good example. The cost of laying the fiber is pretty much the same, be it one strand or a bundle of 100 strands (since the main cost is labor involved)- so it makes perfect sense to throw the bundle in the ground initially and then light them up when needed (lighting them up has costs since this implies purchase of network equipment). Thus, 98% unlit does not mean that 98% of the costs could have been saved!

Of course, there were huge mal-investments during that time but this is not a particularly good example of that.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News