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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: gpowell who wrote (13162)	7/30/1999 3:26:00 PM
From: ahhaha	Read Replies (1) \| Respond to of 29970

With respect to a company's efficiency trending upward with competition which means higher profitability just about no one on this thread agrees. They want ATHM protected under distribution monopoly. If that's what the company wants, you were right to sell. With respect to the availability of cheap foreign labor you haven't been paying attention. Did you not read Greenspan's lament of rising trade barriers under the anti-dumping aegis? Do you really think foreign labor will continue to work at rates below here? The cat's out of the bag and foreign countries are being forced to the pump which will effectively inflate the cost of their labor. Foreign labor has learned the game. Now they will experiment in a great American tradition. The tradition is happening now as demonstrated by the ECI. You aren't paying attention to the inflationary wage settlements going on for at least a year and kept secret from the public. The propensity to inflate is deep and the dollar has hidden and reinforced it. This gives American labor license to raise their compensation. It is called competitive devaluation. It is also called the will to inflate and central banks are the only force to bust that will. They do it by visiting depression on the greedy masses with high interest rates. Either they do it or the open market does it, but in any event it's done in a particularly hurtful way. It's the only way that preserves civilization. During the '70s businesses couldn't do what you suggest. They ended up scratching out a living and their stocks averaged a PE of 7. I have answered the question about how the will to inflate is given a life by the FED's fixing of money price in the million other words I've written all over SI. Over indeed.