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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (130220)	1/1/2001 11:59:48 PM
From: richard surckla	Respond to of 1572106

And in the end there was only one left... his name was TEJEK!

To: tejek who wrote (130220)	1/2/2001 1:17:39 AM
From: Rob S.	Read Replies (1) \| Respond to of 1572106

I think the economy is in fine shape - better now than it was when it cared little about how money was being allocated. The system is now highly democratic - the average idiot and average idiot ANALyst has great influence on where money is invested. The bubble mentality that developed over the past couple of years was not good for the economy because it lavished billions on unproven ventures yet starved off proven, well managed companies. Money was diverted in lemming-like fashion to moment's favorite speculative sectors while the rest of the market was treated as if it were obsolete. Tech is great but it is not boundless. The economy is going through adjustments caused by two macro factors: the pumping up of liquidity caused by the Asian and potential worldwide crisis and the exploding "new economy" technologies centered around communications technologies, ie "the Internet". Another factor in squelching economic growth has been the sharp rise in crude oil costs seen last year. Perhaps without the rise in oil prices the FED's actions would have been tolerated and we would have seen a softer landing. The rising interest rates and oil prices have combined with excess inventory build-ups in leading sectors to cause a short-term nose dive. The clamping down on liquidity should have ended prior to the drastic 50 basis point heightening and has now been acknowledged (by Greenspan) to have gone too far. Greenspan gave a clear signal to the bankers committee to loosen up; we have recently witnessed lower interest rates and increased M1 money supply figures. I think that we will see at least one more quarter of lowered earnings estimates and signs of softening but the economy will come roaring back in the second half.