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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Peter Church who wrote (8710)	10/25/2000 2:26:44 PM
From: Allen Benn	Respond to of 10309

Gold is no longer an indicator of inflation, and has not been for years. Inflation is not at issue today, but it was just a few short months ago. The ghost of inflation is what all the central bankers have fighting for the last couple of years. And why do you say recessions are not caused by central bankers? Greenspan engineered the 1987 crash and the follow-on 1990 recession. On the positive side, he prevented the 1987 crash from mushrooming into a full-blown depression – which at the time most investors expected. As the extreme example, the great depression was thought to be exacerbated, if not caused, by improper monetary policy. The risk central bankers face when they clamp down on economies is that they may overplay their hands and cause recession. What makes the risk real is the time lag between policy changes and when they are felt in the economy. However, Greenspan’s pragmatic recent responses to the Asian Crisis, the LTCM fiasco and the Y2K threat suggest he will not stand idly by while the U.S. economy tanks. If we set recession aside, then your concerns are sector specific. These are just bumps in the road for sectors on the right side of technology being revolutionized. They are catastrophic for sectors being trampled in the process. Allen

To: Peter Church who wrote (8710)	10/25/2000 2:35:22 PM
From: Starlight	Respond to of 10309

Recessions are not generally caused by Central Bankers who mostly react to market forces on their economies and currencies, but by inbalances in supply and distribution of capital. I think there is something deeper going on here. Maybe this is too simplistic an explanation, but it occured to me that the market might be weak because Wall Street doesn't like EITHER Presidential candidate, and it also hates uncertainty. I know that there are deeper causes, too, but I can't help thinking that the election is a big part of the current market weakness. However, the fact that the market has shrugged off rate hikes in recent years and continued to climb might now be ending. Perhaps we're seeing a late reaction to tighter money which just took another set of events (such as the election) to trigger.