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

To: Steve who wrote (49002)	2/16/2001 6:10:46 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 77400

save your busywork for school. for education, try reading Devil Take the Hindmost. Depression was caused by the enormous runup in credit PRIOR TO THE CRASH. Just like today.

To: Steve who wrote (49002)	2/16/2001 6:18:58 PM
From: SouthFloridaGuy	Read Replies (1) \| Respond to of 77400

Dude, the Great Depression, the 80's Japanese bubble, and the US Bubble of 95-2000 were created by one thing and one thing alone: Easy CREDIT, which led to highly leveraged consumers and corporations, which created MalInvestment and economic imbalances, which creates a huge deleveraging process. The difference between Japan and the U.S. is that they are net creditors and we are debtors, which ultimately means that the deleveraging process will come at the expense of inflation and the Dollar. If the Fed wants to save the dollar (which it doesn't appear that they care about), they will have to behold strict monetary pollicy at the expense of the US consumer - this will cause a sharper pain but ultimately get us out of the inevitable deleveraging a lot faster; Volker would have done it, but Greenspam is another story.

To: Steve who wrote (49002)	2/18/2001 4:30:42 PM
From: chic_hearne	Respond to of 77400

What single event or series of events contributed the most to creating the nearly decade long Great Depression: A. The Federal Reserve raising short term interest rates. B. The Stock Market Crash of 1929 C. Hoover's lack of action in proposing a fiscal stimulus. D. The failure of the Bank of the United States (a private institution) B. I'm a cynic. I think the market crash affected the psychology of the country and the world and lead to everything else. Food for thought: Do the high profit margins and growth rates in software production justify a higher P/E than the historical P/E of the technology sector prior to the advent of firms e.g., Microsoft or Oracle? Of course I believe a company of those qualities deserves a higher historical P/e. But I don't believe Oracle or Softie qualify, ever took a close look at the financials??? The real million dollar question is this, if you can answer this correctly, you win my super duper prize: Valuations didn't matter on the way up, so why should they matter on the way down?