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Technology Stocks : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: im a survivor who wrote (15749)	1/13/2000 2:50:00 PM
From: Brian Moore	Read Replies (1) \| Respond to of 19700

What will Greenspan say about technology and the economy? Here's what he said two and a half years ago.... "Alan Greenspan's Brave New World" Business Week, July 14, 1997 Computers and other labor-saving technologies are playing an integral part in the "New Economy," possibly contributing to a productivity surge that keeps inflation low, according to Alan Greenspan. The chair of the Federal Reserve Bank believes that with these technologies, what he calls the "New Economy" can grow faster and generate more jobs, profits and wealth without accelerating inflation. The previous economic model, the Philips Curve, is based on the premise that when unemployment rates fall to a certain level, inflation will soar. The Bureau of Labor Statistics index indicates that this is not happening now: the unemployment rate is at 4.8 percent, but prices are in check and corporate margins are rising despite growth in real wages. Cutting costs and developing new products create gains in productivity that allow companies to make a profit while prices fall and wages increase. The current state of the nation's economy seems to reflect Greenspan's philosophy of a New Economy, but some of his colleagues remain skeptical. A former Federal Reserve vice chair who believes firmly in past economic models stated that inflation will escalate if the unemployment rates fall below a certain level; others have expressed doubts that the productivity gains Greenspan predicts will be realized. ------------ So, looks like he is going to say, "I told you so." This is what he said would happen, and it came true. Is he now going to reverse himself? Say that technology no longer holds this promise of making companies more efficient, helping to keep prices down? I don't think it's likely. My guess is people -- who are now expecting the worst -- will be pleasantly surprised and the markets will be up nicely tomorrow. He will be "watchful" but not as negative as people think. Also, the common comment is to note that Greenspan is speaking on technology and the economy, but the key thing is to watch for hints about what he will do with interest rates. This is just a repetition of the same old blaa blaa blaa. What these people don't realize is that when Greenspan talks about technology he is directly addressing the economy in general and inflation in particular. People who plan to ignore his topic and look for "hints" might be blindsided when it turns out that his topic is more important, this time, than hints. Wonder what others here think....