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.

Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Mark Fowler who wrote (6202)	4/7/2001 7:22:31 PM
From: patron_anejo_por_favor	Read Replies (1) \| Respond to of 57684

Nice read Mark! The last paragraph says it all: What does all this mean? With companies missing revenue forecast by such a large margin, Wall Street does not recognize the severity of the fallout from the tech bubble. It is highly likely that growth will fall faster than estimates, and turn negative, as Wall Street keeps looking for the silver lining. Lucent shows how fast an established company can slip once it leverages itself and experiences unfavorable market conditions. At one point today, Lucent slipped below its 1996 IPO price. While consumers are continuing to empty their wallet at a record pace, the day will come when they realize they need to start saving again. Remember that household wealth declined last year for the first time since the government started following it in the 1940s. As consumers retrench to get their financial house in order the economy, being dependent on consumption, will slip in to a recession. Not a pretty picture, but there is no way to get out of a bubble except for not creating one in the first place. Have a great weekend!