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Pastimes : Ask Mohan about the Market

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To: Mike M2 who wrote (7503)	11/9/1997 8:36:00 PM
From: Haim R. Branisteanu	Read Replies (1) of 18056

Bill, this anomaly is in existance for several years by now. At the core of this issue is PRODUCTIVITY which the FED included is difficult to asses and computerization. This slow growth results from the mere fact of no pricing power - e.g. low inflation, and the whole productivity issue is bearied in the depreciation number as computer equipment is mostly depreciated during a period of 1 to 3 years. Refinancing corporate debt is in full swing and interest rates droped around 25% to 35% or even more if accounting for LIBOR loans. So called "agressive" accounting practices helped to. In any case looking forward, interest rates will have much less impact and most producitvity gains were achived even that the accurate gain is not known. All this will result in substantial lower profits. Futher more hte Oxford debacle does reflect the sad consequences of "agressive" accounting practices which is used in many other industries reporting inflated earnings. Software comapnies comes to mind. Happy trading Haim

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