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To: Efthymios H. Zacharias who wrote (24999)	10/5/2000 4:08:17 PM
From: LLCF	Respond to of 436258

Ho ho ho... he usually has a monopoly on this type of post as well: mercurycenter.com One of the most prominent -- because he makes some of the most salient points -- is Michael Mandel, the economics editor of Business Week, who is the author of the upcoming book, ``The Coming Internet Depression.'' Mandel's thesis is that the virtuous circle that has fed technological growth -- venture capital financing, well-funded challenges to the incumbents, and high productivity with low inflation -- can easily become a vicious circle as the stock market turns down. A down market, he says, will eventually erode venture funding, limit technological challenges, and encourage inflation -- with a further market slide. A provocative argument. Few people would quibble with the idea that venture funding has been the engine for the New Economy. But there is this to consider: Such an engine is hard to put into reverse. And at least some people think a few less revolutions per minute might not be all bad. ``Stupid investments don't do you any good,'' says Richard Carlson, an economist with Spectrum Economics, who notes previous excesses of investment in industrial equipment and real estate. ``In venture capital, we actually overdid it. So modestly less is better.'' DAK