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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (40421)	10/8/2000 8:24:57 PM
From: bambs	Read Replies (2) \| Respond to of 77400

Don't count on a rally coming because bulls think it should. "In every boom companies are formed primarily if not exclusively to take advantage of the public's appetite for all kinds of stocks. The average man,who never thinks of values but of prices, and is not governed by conditions but by fears, takes the easiest way - he stops thinking that there must a limit to the advances. That is why those outsiders who are wise enough not to buy at the top make up for it by not taking profits. The big money in booms is always made first by the public - on paper. And it remains on paper." - Jesse Livermore, 1923 cyberhighway.net "The excess credit which the Fed pumped into the economy spilled over into the stock market--triggering a fantastic speculative boom. Belatedly, Federal Reserve officials attempted to sop up the excess reserves and finally succeeded in braking the boom. But it was too late: by 1929 the speculative imbalances had become so overwhelming that the attempt precipitated a sharp retrenching and a consequent demoralizing of business confidence. As a result, the American economy collapsed. Great Britain fared even worse, and rather than absorb the full consequences of her previous folly, she abandoned the gold standard completely in 1931, tearing asunder what remained of the fabric of confidence and inducing a world-wide series of bank failures. The world economies plunged into the Great Depression of the 1930's." History has a way of repeating itself. It's time to take are medicine. Too much easy cash pumped into this system. It spilled over into the markets. Anyone with a dot.com idea got ipo'ed. Fiber has been laid with out thought of the real cost. No concern to when these ventures will be profitable any time soon. The problem we face is that we have built this market up on debt. We have an economy that will now cycle down as the reality of our wasted funds comes back to get us. I think the only way that things can go on like this for a few more years is if the M3 continues to expand at a 10-12% rate. The problem is that the longer we go on like this the more we will have to pay in the inevitable cycle down. Bambs