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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Pareti who wrote (92945)	11/22/1999 6:14:00 AM
From: Joseph Pareti	Read Replies (2) \| Respond to of 186894

Spinning Financial Illusions: The Story of Bubblenomics; has anybody seen this ? siliconinvestor.com Not that I agree with Fleckenstein's view on Intel, but I surely do on his take on the ".com league" ... --------------------------------------------------- It is easy to see why technology is such a financial aphrodisiac. Life without television, fax machines or cellular phones would be far less enjoyable, and life without Prozac would be a boring life at "book value." ... about the late 20's bubble - according to "Modern Times" "Two new and sinister elements emerged: a vast increase in margin trading [online/day trading] and a rash of hastily cobbled-together investment trusts [Internet stocks]. By 1929 some stocks were selling at fifty times earnings. [How about well in excess of 50 times revenues today?] As one expert put it, the market was 'discounting not merely the future but the hereafter.' A market boom based on capital gains is merely a form of pyramid selling. ... "The new investment trusts, which by the end of 1928 were emerging at the rate of one a day [several internet IPOs per day now], were archetypal inverted pyramids. They were supposed to enable the 'little man' to 'get a piece of the action.' [Again, online trading.] In fact, they merely provided an additional superstructure of almost pure speculation, and the 'high leverage' worked in reverse once the market broke. [Futures, options and OTC derivatives today]