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To: JDN who wrote (103133)	5/4/2000 9:16:00 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

I thought this was funny: Dissing the dotcoms with Scott McNealy Sun's outspoken CEO would rather golf than go online and says overpriced Web firms have 'zero revenues but enough cash to purchase Iceland.' By Reuters May 3, 2000 5:08 PM PT NEW YORK -- Sun Microsystems CEO Scott McNealy took a cue from David Letterman while speaking to investors at a computer technology conference on Wednesday, reading his top 10 list of "Signs a Company's Market Cap Is Inflated": 10. They have an 'e' or an 'i' or a 'dot-com' as part of their name. 9. Employees' pagers can only receive stock prices. 8. The initial vesting period closed yesterday, and today the office is empty. 7. There are more dogs and cats in their offices than employees. 6. Employees are heard saying, 'Profits are so yesterday.' 5. The accounts receivable sign hangs over a toilet. 4. The value of cars in the parking lot exceed the company's revenue by a factor of four. 3. The investor relations department reports to marketing. 2. Zero revenues but enough cash to purchase Iceland. 1. Employees ask, 'Hey dude, what does the P in P&L stand for?' Talking tech-trash McNealy, who heads the largest provider of the servers that are the backbone of the Internet -- also said he'd rather go to a San Jose Sharks hockey game, play golf or hang out with his three boys than go online. How can YOU tell a company's market cap is inflated? Never one to mince his words, he also took some potshots at the competition. For instance, when asked about Microsoft Corp., McNealy replied: "Which one?" He also slammed IBM for its slide in hardware sales and pointedly called computer maker Hewlett-Packard Co. "a great printer company." The chairman and chief executive of Palo Alto, Calif.-based Sun Microsystems Inc. (Nasdaq: SUNW) spoke to investors at the Merrill Lynch computer technology conference in New York.

To: JDN who wrote (103133)	5/4/2000 12:53:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 186894

But, if I am not mistaken we also CURRENTLY have the highest interest rate also. Do you think the bond holders would accept negative real interest rates? Medium and long term market interest rates are a function of mainly inflation - the higher the inflation, the higher your mortgage rate will be. The interest rates (the shortest term interest rates are one of few tools available to Fed to bring down the inflation. So the sequence, if things work out as planned is: + Fed increases the short term rate, use other tools to control moeny supply. + the inflation (on consumer and producer level) goes down over time. + the lower inflation lowers long term rates + when inflation is low enough, the Fed can reduce the short term interest rates Who's to say it isnt the INTEREST rates creating the inflation?? Just about everyone who passed Economics 101 Also, I might point out, to my knowledge, I think we presently have the highest productivity levels also. Increasing productivity, if anything, would work to reduce inflation. I don't think the absolute level of productivity has any material influence on the level of inflation. Joe