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

To: Maurice Winn who wrote (118787)	5/14/2002 5:45:22 PM
From: Wyätt Gwyön	Respond to of 152472

When people expect to live for 1000 years, a very low rate of return makes it worth saving for the future. this is at odds with the current situation, where the savings rate is lower than ever. because of the productivity miracle of modern technology, near-zero production costs and huge gains in unit sales]. the main problem with your argument about the near-zero production costs is that this is a holy grail of all capitalists. what that means is that once such high-margin opportunities are discovered, hoards of capital will attack the opportunities, and the resulting malinvestment creates an oversupply that drives down prices to or below the marginal cost of capital. this, and the fact that technology constantly obsolesces itself, results in a situation where technology is a Sierra Madre economy (lots of gold diggers, few finders). you add up all the inputs and they are less than the output. telecom carriers have lost 1 TRILLION DOLLARS in the last 5 years! how long do you think it will take for mobile-tech cos to make that back, including the time value of money? quick answer: TOO LONG! a situation where the inputs are greater than the outputs is a waste of resources. a waste of resources is inflationary. thus it is not surprising to see the US dollar losing ground to the POG.