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To: Don Lloyd who wrote (55010)	1/6/2001 4:55:55 PM
From: KyrosL	Read Replies (1) \| Respond to of 436258

I said nothing about profits. I agree that the Internet productivity increases may very well result in a deflationary wave in the not too distant future. You have to pick and choose very carefully which companies will be profitable in this environment and which will not be. I think the old established "brick and mortar" companies whose businesses are not threatened directly by the Internet but who derive productivity increases from the Internet are much more likely to benefit from the Internet revolution in the longer term. Kyros

To: Don Lloyd who wrote (55010)	1/6/2001 6:57:21 PM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 436258

Don, those that fail are those that fail to learn to be agile. The FED is one best example. They failed to adjust interest rates to the economic environment last year and during this year. Several years ago the inventory turn at most companies was around 4, company with 6 times inventory turn a year was a great company 15 years ago, now most companies work like grocers 12 to 15 times inventory turns a year. as to profitability if once you made 5% on times inventory turns you make it up with 1.5% at 15 times inventory turns. The issue is agility to adjust to competition and market place information moves faster but so is money it is all relative and if you are not on top of things you are prone to lose money. The FED lost sight of the velocity the economy is moving and they should meet every 3 weeks not 6 and release critical statistics twice a month not monthly we live in different times - things are happening faster and humans are struggling to adapt to it. BWDIK Haim

To: Don Lloyd who wrote (55010)	1/7/2001 8:10:08 AM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 436258

Nice analogy between agriculture and telecom. While farmers may not be richer and telcos prolly won't either, people are better-nourished and will be better connected. So while the Ponzi scheme of wireless auctions and mounting telco debt and gullible public markets may not benefit investors in SPs, greater bandwidth availability should increase aggregate productivity of end users. Though perhaps a crash (hopefully just a dip which we all can buy lol) or depression (hopefully just a recession) will slow things down a bit for a decade. Interesting article in Barron's on telco debt. Telecom Tightrope Like real estate a decade ago, telecom threatens to topple the economy By Jacqueline Doherty interactive.wsj.com