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To: pater tenebrarum who wrote (55473)	6/29/2000 11:44:00 AM
From: LLCF	Read Replies (1) \| Respond to of 116761

Grant addresses the part of the 'productivity' miracle that we were pondering after GreenJeans last speech, reduction of business risk by faster information: "Decisions were made from information that was hours, days or even weeks old. Accordingly, production planning required costly inventory safety stocks and backup teams of people to respond to the unanticipated and the misjudged" "The remarkable surge in the availability of more timely information in recent years has enabled business management to remove large swaths of inventory safety stocks and worker redundancies" Grant's response: "If computer technology had actually removed a significant increment of risk from the U.S. economy, economic returns would necessarily fall; but-as it seems-they haven't fallen at all." ROFLMAO How about this: Thanks to cheap computers, investment bankers can easily create 'optimal' capital structures for their corporate-finace clients, something that was not so easy to do in the days of pencils, slide rules and handheld calculators. The older technologies didn't contribute to a level of confidence sufficient to lead bankers and their clients to minimize equity capital [and therefore in many cases to maximize indebtedness]. Thus, the automation of investment banking has, at the margin, contibuted to the jazzing up of the U.S. corportate balance sheet. This guy is a real hoot...... I definitely recommend anyone to subscribe to Grant's: grantspub.com Maybe he won't mind my tossing this tidbit out if I put his link out as advertisement. You know if you look at IT comparitively isn't it pretty hard to argue that the last 10 years is more important than what was happening in the early part of the century??? I mean common, how cool was radio? Telephone for ordering materials instead of mail, etc?? I mean common, does that make any sense [Greenspans argument]?? DAK DAK