Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (41293)	2/24/2000 11:23:00 PM
From: HairBall	Respond to of 99985

Les: redeployment of capital What an interesting way of putting it...from the individual investor's pocket to theirs....hhmmmm! Regards, LG

To: Les H who wrote (41293)	2/25/2000 5:16:00 AM
From: KyrosL	Read Replies (1) \| Respond to of 99985

Les, excellent article. However, I have a problem with his comments that manias are generally good because they result in quick redeployment of capital. In the case of the railroad mania, this was the case because railroads were franchises and there was little or no duplication when building the infrastructure. In the mania we are in, there is tremendous duplication and the infrastructure we are building is guaranteed to produce very little, if any, profit and even result in some serious deflation in the not too distant future. In other words, IMO, the current mania has resulted in a major misallocation of resources. Huge amounts of money and talent are flowing to fantasy economy companies where the rules of the game (reasonable profit expectations) have been suspended. Meanwhile, real economy companies are getting deeper into debt not to invest but primarily to support their stock. The infrastructure providers (Cisco et all) who depend on the fantasy economy for a good deal of their sales, are in for a rude awakening in the relatively near future.

To: Les H who wrote (41293)	2/25/2000 9:38:00 AM
From: yard_man	Respond to of 99985

>>"At the end of the day, the internet services offered by the existing companies will dwarf those offered by the new company IPOs." << I agree completely with that statement. It is what I've been saying -- in a few years one of the big internet cos will probably be a Walmart or some well-known traditional retailer that moves to the internet cautiously -- letting others make the mistakes first. However, I don't believe that speculative bubbles are good.