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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Fischofer who wrote (62059)	10/23/2001 8:28:01 PM
From: Dave	Read Replies (3) \| Respond to of 74651

Bill, I'm not claiming that the U.S. and Japan are in the same boat, but rather that the conditions in Japan over the past couple of decades demonstrate with crystal clarity how ineffective lowering interest rates becomes as a weapon against recession, as soon as people stop believing in the infallibility of the central banks. Starting during the 80's during the PC revolution, and accelerating into the late '90s, American speculators allowed themselves to be suckered by the allure of Easy Money. Their massive malinvestments in worthless companies run by squeaky college kids and network guys resulted in a enormous waste of capital. Even zero interest rates can't save you when it's time to pay the piper. That part is not analogous to Japan, whose bubble was a different animal. The Fed's impotence to save us this time, on the other hand, has Japanese Central Bank written all over it. Dave