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 : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: RetiredNow who wrote (21494)	8/30/2001 6:33:41 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 24042

re: The advances of the last 5 years were in part due to the market feeding frenzy started by the Telecom Act of 1996. Deregulation is very often a good thing. Deregulation is a good thing, if the government really intends on letting the market discipline punish bad decisions. If they don't, then there won't be any "economic Darwinism". There will, instead, be a gradually-building Moral Hazard, ending in a crisis, which is resolved by a government Fix, paid for with your tax dollars (or your grandchildren's tax dollars, since deficit spending is back in vogue). And then re-regulation. This meets my naive definition of "failure". We are just at the very beginning of a tidal wave of telecom debt defaults. The amounts will end up being in the hundreds of billions. Will European and N.American and East Asian governments let their big telecom and telecom equip companies go under? No, they won't. You believe in a nice theory. I agree with the theory, I just don't see any willingness of governments to actually follow the theory. They had a consistent longterm track record of bailing out Big Mistakes made by private Big Money. Seek truth from facts.