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Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (37040)	7/23/1999 3:44:00 PM
From: marginmike	Read Replies (1) \| Respond to of 152472

Greenspan had nothing to do with the selloof. The market was overbought.

To: limtex who wrote (37040)	7/23/1999 7:11:00 PM
From: Maurice Winn	Respond to of 152472

Limtex, if people think Alan Green$pan has got it wrong, they should sell their stock and hold dollars and earn the high interest rates. They don't do that because they don't really believe it or they don't understand what it's all about. Why do people seem to think that lenders of money should lend at lower interest rates? Of course lenders, like ThinPhone sellers, aim for high as possible ASPs. Pretty simple really. If they ask too much for their money, then borrowers won't borrow. That's pretty simple too. So then the lenders will have to cut their rates until the borrowers borrow. It's a market. Supply and demand. Alan needs to ensure the value of the currency. He does that by controlling the supply to maintain value. Value is represented by interest rates. Some people prefer to earn interest and let others do the investing. My job is to borrow their money and select shares to invest it in. If I do a bad job, I don't get a good return on that money and lose my equity. If I do a good job, I earn a lot more than the cost of the interest. People whining about the interest rates going up are obviously not very good at investing that borrowed money. They should get a job where they can earn money. It's a competitive business. If I'm better at investing the borrowed money than they are, they'll not make money and I will. They go out of business and I don't. It doesn't mean the economy slows down to have higher interest rates, it actually means the economy is doing well because I can find great places to invest the borrowed money. When the economy is doing well, lenders get to charge more for their money. Same as Q! gets to charge more for ThinPhones and pdQs when their sales are booming. If lenders misjudge how much they can charge, they'll find they get their money back and earn no interest on it - they'll have to find somebody other than me to lend it to. They'll have to lower their interest rates. 7% interest rates in The New Paradigm are not high. 15% would be stretching it. Mqurice