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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: David Zgodzinski who wrote (166552)	5/17/2002 6:03:12 PM
From: Joan Osland Graffius	Respond to of 436258

David, >>well manufacturers should do better. Thanks for your response. Our manufacturing base is integrated globally. It is my perception our manufacturing companies use foreign sources and in these cases the foreign manufacturing costs should go up with a falling dollar. The dollar translation to profits could be positive if they can pass on the increased cost of their products to the consumer. >>But in general the bulls probably like the idea of a weaker dollar, so it wouldn't be all that strange to have stocks and gold as fellow travelers for awhile. Interesting, I had not considered this possibility. Joan

To: David Zgodzinski who wrote (166552)	5/17/2002 6:44:27 PM
From: maceng2	Read Replies (1) \| Respond to of 436258

the bullish case for equities would be that they are a nicer inflation hedge than gold I think, for example, DAK has pointed out that much of the stock market price criteria is based on the rate of USA inflation remaining low. Myth Man has shown that in cases where inflation has shown up, stock prices indeed go up, and I pointed this out to DAK, but there is a delay before one thing effects the other. This is an important point because of the instability created imho. (and I am slightly above clueless on economic theory, I'm looking at it as an engineer from a process point of view) Having a huge debt load (as a country, or as a company, or as a person) would not be a good idea in this situation. Lots of small print on loans (supposedly "fixed rate") would need some checking. Loans can get called in too, I'm sure there is small print on that as well. I'm even ignoring the dubious hedge fund factor here, thieves on wall street, SEC investigations etc etc etc. just wondering.

To: David Zgodzinski who wrote (166552)	5/17/2002 6:56:17 PM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 436258

great point theoretically. in part i assume that's what reaper is focused on. but generally speaking, that does not solve valuation, pension funding, or debt service....all historically hugely lopsided issues. throw in some trade wars as an outlier.. or a bush liar or whatever.