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

To: Tony Viola who wrote (97794)	1/29/2000 12:31:00 AM
From: Barry Grossman	Read Replies (5) \| Respond to of 186894

Tony, Other than the recent oil cartel tax we are forced to pay, where is the inflation? In my business, I've been trying to raise prices for years now and competition keeps it from happening. This country doesn't suffer from a lack of competition either. Prices will stay under control. If the wage and benefit cost component goes up because of decreasing supply, competition will keep price increases to a minimum but margins of competitors will shrink. Or - margins can be maintained if increasing output can be accomplished in spite of diminishing supply of labor. This is what appears to me to be happening. It's called increasing productivity. Today, I was surprised to hear Al Gore admit to Ron Insana today that it is actually beginning to look like the rate of productivity increase is itself increasing. Tuesday will likely bring a 25-50 basis point hike but I was under the impression that this had already been factored in. Today was probably a fear of more hikes later in the year. Maybe there will be more and maybe there won't. These moves will affect the financing plans of the marginal buyers but I don't think it will slow down the inexorable adoption of the latest and most advanced information technology. Maybe GM, Ford, Corning, and the like will suffer some from higher rates, but I can't see how they can do much damage to Intel. Perhaps a little slowdown wouldn't hurt. But zu viel ist zu viel. Barry