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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Boplicity who wrote (33910)	10/27/2000 3:04:16 PM
From: TigerPaw	Read Replies (1) \| Respond to of 54805

very engine that was driving the new economy, the IPO and VC market. Do you think it is gone via laws, like non-pooled accounting? or just because the market is in a downtrend? If it's the latter then it should just be a temporary pause in IPO activity, with the weak VC firms eliminated. TP

To: Boplicity who wrote (33910)	10/27/2000 6:28:35 PM
From: RocketMan	Read Replies (2) \| Respond to of 54805

the FED has taken away they very engine that was driving the new economy In a large part, the Fed WAS the engine driving the new economy, through excessive monetary infusion during the Asian crisis and the Y2K non-crisis. The bull market was humming along nicely until early 98, new technologies were rolling out at a good pace, and GDP growth was sustainable. The Asian financial crisis in October, and later the Russian and South American crises, changed all of that. The Fed's infusions of cash provided the fuel that allowed a plethora of new companies to come public, many of which should never have done so. Could we have absorbed that growth? Could the US economy continue to grow at those rates? Would productivity continue to grow, and provide a check on inflation? Would wages be checked by the new economy's extrinsic reward metrics? I doubt it, but we will never know. The Fed took care of that, just as they took care of the crises. We are now back to classical boom and bust. We will bust, IMHO, and the gummint will bail us out, garnering votes for whatever regime is in power.