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.
Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 160.55-4.8%Dec 12 3:59 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Cary Salsberg who wrote (2872)10/22/1997 3:20:00 AM
From: jweiner1 Recommendation  Read Replies (1) of 10921
 
Cary & Sam,

(warning - not exactly about semi-equips)
Cary's brief comment implies insight about a fundamental issue within capitalist structures-the limitations of typical price systems to adequately assign correct (long life cycle value) to market actions. There are certain markets in which the pricing mechanics of the invisible hand utterly fail to serve. A good example is power generation in which some utilities mistakenly invested in nuclear plants because of their suggesteed economies of scale while ignoring the overt thermodynamic inefficiencies of creating huge temperature differentials for typical low level end uses (2nd law). Externalities that were not accounted for included the problem of containment of the huge amount of energy created, the "friction" of moving it across the huge grid it was designed to serve, the overhead of the heavily centralized administrative structure required and the unknown (outside of the market) future costs of disposal and decommissionning to be borne by folks living well beyond the useful life of the original equipment.
In our somewhat free market economy those prices are euphemistically called "stranded costs" on the books of the utilities whose economics were framed too narrowly to reflect reality.
Well this was a fun rant for me and I'll pick up the next round for any who got this far...

james w
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