Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Amy J who wrote (128580)	3/1/2001 7:41:17 AM
From: Road Walker	Read Replies (2) \| Respond to of 186894

Amy, Mt take on the Greenspan testimony yesterday. I think he believes that this slowdown is an "inventory correction" primarily in technology, because of over-capacity built in the heady days of 1999 and the first 1/2 of 2000, when the growth assumptions went through the roof. I don't think he believes that the larger economy is in all that bad shape, except for the collateral damage caused by a tech slowdown, subsequent NASDAQ decline and wealth effect, and the energy cost effect on spending. He seemed willing to let the tech debacle play out rather than risk over stimulating the entire economy. I'm not saying he won't cut rates, but I don't think he will be aggressive. IMHO, tech has both contributed to the US growth and been a limiting factor on inflation over the last decade. Right now sales seem to be declining, not a good scenario to get back to a situation where capacity and demand are in balance. I think Greenspan may underestimate how big a role tech plays in the overall US economy. My take on his words, probably wrong. John