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Technology Stocks : AT&T -- Ignore unavailable to you. Want to Upgrade?

To: Sabrejet who wrote (3401)	5/3/2000 1:57:00 PM
From: Howard Bennett	Read Replies (2) \| Respond to of 4298

>How does one decrease or slow labor costs? In the past (as I understand it) it was increases in worker productivity that offset the higher cost of employment. The American worker (because of technology) was able to produce more per hour of work, thus offsetting higher labour costs. I think the only way to slow labor costs is to tighten monetary policy by hiking rates and slowing the booming US economy. It is quite a catch-22 -- a touch ironic that this is happening when things have never been better for the USA. Consumer spending accounts for some 70% of US GDP ....so less spending by us will slow the economy and earnings (in the old economy -- not so sure about the new economy since new economy stocks typically have less long term debt to service.) >I see a 50 point increase and a devastating effect on >equities if that happens I think I heard on CNBC that .25 point is already priced in...but I agree that a half point would be unexpected and thus cause major problems for stocks with expanded P/E's (or no earnings or poor EBITDA/EBIDA growth i.e. cash flow negative).