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To: Arik T.G. who wrote (667)	4/2/2001 3:46:22 AM
From: John Dally	Read Replies (1) \| Respond to of 686

Hi Arik, I agree with what you write, but would add that the bubble primarily financed new production capacity in the new economy. So, while both old and new economy companies are overvalued, the production overcapacity is most acute in the new economy. I think it was the "father of this thread," Sid Turtleman, who made the observation that supply / demand imbalances lead to recessions, but production overcapacity leads to depressions (because you need to bankrupt enough players for prices to stabilize). So, while old economy stocks are going to get spanked, new economy stocks are going to get whipped. Faced with a choice between being spanked or whipped, most people prefer to get spanked. -g- Best regards, John.