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 : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (76795)	5/10/2001 6:23:21 PM
From: GraceZ	Respond to of 99985

Why not? Excess capacity? You say there are no sound investments, but is that due to capacity, concern about return on existing capacity, costs to add capacity, or risk of borrowing? It's concern over return on existing and future capacity. If the return on existing capacity, or return on investment in capital spending rises, for what ever reason, money appears before you. Capital at risk does not want reasonable return it wants unreasonable return. If the return isn't high enough for me to put my own savings into capital spending how on earth would it be high enough for me to borrow money and pay interest on that money? The money that the Fed has created in the last five years has been used to speculate in the stock market, dubious enterprises and now the real estate market. That speculation brought down the return on capital spending by creating entities that did not need to fund their expansions from operations. I can compete with another business that is in a similar field with similar expenses, but how can any business compete price-wise with one that gets their money from sources outside of that business?