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.

Pastimes : The Justa and Lars Honors Bob Brinker Investment Club Thread -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (407)	7/20/2000 9:03:11 PM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 10065

MGJ: Re: "Further, the price of oil is not as significant a measure in the price indexes as most believe." Greenspan: "To be sure, if current personal consumption outlays slow significantly further than the pattern now in train suggests, profit and sales expectations might be scaled back, possibly inducing some hesitancy in moving forward even with capital projects that appear quite profitable over the longer run. In addition, the direct negative effects of the sharp recent runup in energy prices on profits as well as on sales expectations may temporarily damp capital spending. Despite the marked decline over the past decades in the energy requirements per dollar of GDP, energy inputs are still a significant element in the cost structure of many American businesses." Greenspan on energy and inflationary expectations: "Moreover, energy prices may pose a challenge to containing inflation. Energy price changes represent a one-time shift in a set of important prices, but by themselves generally cannot drive an ongoing inflation process. The key to whether such a process could get under way is inflation expectations. To date, survey evidence, as well as readings from the Treasury's inflation-indexed securities, suggests that households and investors do not view the current energy price surge as affecting longer-term inflation. But any deterioration in such expectations would pose a risk to the economic outlook."

To: MrGreenJeans who wrote (407)	7/21/2000 1:15:19 AM
From: bobby beara	Read Replies (1) \| Respond to of 10065

>>>>the price of oil is not as significant a measure in the price indexes as most believe.<<< MR. Gj, the great decade of the 90's has not only been driven by technology, but of cheap commodities, especially oil, this is a mistake to dismiss oil, as much of new era speak does. in fact, i believe cheap oil has been as much of a driver as technology this is much reminiscent of the 60's when everybody was buying caddy's and chevy's with a 6 barrel carb on top of a 405. the cheap oil has been at the expense of the cratering of asia and russia and the most oil producing countries, 1998 may have been a major bottom for them, the 6 year commodity cycle sezs yes. like the late 70's, i think the auto companies that start producing fuel efficient autos, will be winners. b