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Technology Stocks : Newbridge Networks
NN 11.38+0.2%11:08 AM EST

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To: Doug who wrote (6374)9/6/1998 4:43:00 PM
From: Ian@SI  Read Replies (2) of 18016
 
Doug,

Some rather interesting hypotheses in your post.

Near ten percent of the U.S Economy is export oriented. It is exactly this sector that provides the GDP growth.

Does this imply that the US Economy could lose any other 10% and still have the surviving parts grow. i.e. - the only important 10% for the growth and economic wellbeing of US citizens is the export oriented products / services. ... or that anything produced for internal consumption such as water, power, local radio / tv etc. has no net value added. Is there any economic theory which supports such a hypothesis? ... or is this all your own original thinking?

...The main reason for our long economic cycle has been the promotion of the free trade concept and taking down of economic barriers on a global basis.

... I see some increase of Controls on a global basis. In the long run that will be good for every one.


Normally, when I express opposing views as my firmly held beliefs, I try to put them in different posts. Especially when one of them is unsupported by any facts or statistics. Hint: Increased levels of regulation always produce more unintended negative consequences than expected benefits.

I think a maximum of 7% return on Equity is fair and reasonable under such circumstances.

If you feel guilty about taking more than a 7% ROE on any NN or another investment, I'll send you the address to which you may mail me any cheques. :-)

With kind and civil regards,
Ian.
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