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 : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Robin Plunder who wrote (103586)	9/3/2001 6:29:06 AM
From: limtex	Read Replies (1) \| Respond to of 152472

RP - Jack Welch is as good as oyu can get for an opinion. He says he has never seen anything like it. Others many others say the same. Business in the growth engines is evaporating. As the business climate worsens so companies cut out every cent of expenditure the can just to preserve cash. This is a self perpetuating downward spiral and is the very reason why Mr G and his elderly colleagues should not have put up interest rates to attack the NAZ as they undoubtedly did. The question of confidence in the international system is now at stake. It is necessary to restore confidence without whihc we are in a global depression. Every interst rate cut has been like pulling teeth. For the worst business conditions in living memory the interest rate is still way too high. Best regards, L

To: Robin Plunder who wrote (103586)	9/3/2001 7:46:32 AM
From: Jack Bridges	Respond to of 152472

Your three points are well taken. All required abundant liquidity. The Fed accommodated as a byproduct of the Asian Crisis; the bailout of the LTC fiasco, and to ward off possible Y2K risks. When Y2K fizzled out, there was risk of inflation, exacerbated by the exuberant stock market. Tightening was the order of the day, and probably did prevent a bigger boom-bust than we are experiencing. As the air went out of the balloon, it quickly became apparent that 'just-in-time' inventory controls were a myth in the tech area. Instead, productive capacity is hugely out of whack. So now we see the Fed pushing on a string, even as the States rapidly restructure. Europe and Asia are beginning to follow suit. Perhaps there is a bright spot in the growing ratio of economic activity coming from small business and self-employment. Is this is the stabilizing force that may prevent a downward spiral while we wait for some new engine to appear?