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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Cynic 2005 who wrote (95158)	4/17/2001 11:46:33 AM
From: Thomas M.	Respond to of 436258

Jim Rogers visits India and offers his perspective: millenniumadventure.com with this commentary on the NASDAQ: Ultimately, the IT bubble, which is bursting in the U.S., will have profound ramifications in India. The Nasdaq is hitting new lows and I think the bubble still has a way to go. No bubble ends with two-year lows. Bubbles end with 10 or 15 year lows.

To: Cynic 2005 who wrote (95158)	4/17/2001 12:43:44 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 436258

i'm not sure what they're thinking...my guess is routers are really a secondary consideration. much more important to them is the credit bubble that they aided and abetted at every turn...credit market debt in the US economy has DOUBLED over the past decade, from 14 to 28 trillion dollars. most of this went towards malinvestments, consumption and speculation. the Fed's role is now to attempt to blow this bubble up to even greater proportions, since it follows the same dynamics of other bubbles: it needs to grow geometrically, or it will collapse. it really is ultimately only a question from what point it will collapse: the longer it endures (read: keeps growing), the more awful the ultimate consequences. the old Ponzi finance trick is to try to outrun defaults by creating new credit faster than old credit is defaulted upon. it has worked in every crisis we've seen over the past 15 or so years. the past year is the first instance of this edifice looking wobbly, and the old tricks not working as well as they used to. it is possible that we have surpassed the point at which the debt load becomes too great to be supported anymore by underlying cash flows. if so, we should see the defaults/vs. new credit issuance curve invert at some point.