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To: Ahda who wrote (166198)5/16/2002 1:42:25 PM
From: Ahda  Respond to of 436258
 
washingtonpost.com

Venture Cuts Reflect Fewer Opportunities
Oversupply of Funds Threatens Returns

The huge amount of uninvested capital -- at least $40 billion and as much as $106 billion, according to one study -- presents a problem for the venture companies, because there is no longer any guarantee that the return on money they put into start-ups will be enough to meet their profit goals.So many venture firms are drastically reducing the size of their funds by announcing that they won't collect all the money their investors have promised.

Purpose of investment dollars is to create future value . One has to think in terms of accounting here as the dollar supplies grow on basis of economic evaluation. IF the base is fictional the dollar supply can increase but have little power in real world terms.

Reading the above it appears we have grown dollars and honey i shrunk the kids becomes honey i shrunk business opportunity here.

Rates can't control an economy nor can a loose dollars policy create sustained growth. Natural growth equals tight control of dollars and too many dollars have decreased the opportunity for those dollars to create value.