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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.54-1.2%10:18 AM EST
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To: KeepItSimple who wrote (54172)4/30/1999 6:37:00 PM
From: Greater Fool  Read Replies (1) of 164684
 
>>there IS rampant inflation going on

Inflation is not when asset prices rise, it's when the cost of production rises. I sell my Amazon shares for more than I bought for them not because it cost me more to produce them but because people are willing to pay more for them.

So far the economy has grown faster than it "should" be able to without producer prices rising. The only way this can happen is if productivity rises, and one of the theories is that the rising productivity is driven by computers and the internet. (This would help explain the valuations of net stocks, eh?)
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