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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4197)	4/12/2002 4:04:38 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

Oh, airline fare hikes. Must mean that airline stocks declined, since airlines have no "pricing power". After all, it is inflationary, isn't it, experts?

To: ahhaha who wrote (4197)	4/15/2002 12:30:57 AM
From: frankw1900	Read Replies (1) \| Respond to of 24758

Thankyou! I follow your description to here (and I'm making sure I understand): The instability feeds back into their own evaluations as seen in their reaction to a persistent firming in the POG. This is an amplitude increasing effect of interference and it is sensed by everyone including those who make decisions for IT spending. I have a vision of an overdriven PA system and the ringing that continues after the microphone is turned off. I don't know if the parallel is exact, but isn't higher low of POG the 'ringing' you get in the Fed example? In a larger picture: A series of (discrete?) positive feedback loops, so to speak, leading to the result that economic activity and inactivity are more extreme in depth and/or duration than they'd be otherwise. I believe you're saying I'm not really looking at this. "What you've learned is no longer true." That I'm looking at the wrong place and time. OK then, we are here, now: AG finds himself on the depression trail and he's going to restart the pump. Due to the increasing base ("the pump") price level will rise, stock investment (money forced to superior return) will increase and and new investments, price rises, etc. are possible. This can last for quite a while you say - [My assumption is] because old inventory, assets, lousy investments, are wound up, and new businesses, markets and sectors created. - This is the path you say we've started along? If so, we're a long way from slack taken up, markets filled, sectors overinvested, and from this: Eventually FED has to raise rates to slow economy. Maybe by that time Blinder will be chairman. That would mean that FED elects to add money to keep rates from rising. That's when the mischief starts. Which surely would be bad for stocks.