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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: mcg404 who wrote (19737)	6/13/2002 7:01:21 AM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

John, it ain't so. I remain armed with a QUALCOMM light sabre in my right hand and a wad of US$ in my left. Sort of like the Lady of Justice, holding a sword in one hand and scales of justice in the other. commonlaw.com My guess is that markets will partition like India and Pakistan, with companies with cash flow, profits, money in the bank, no debts and a long term business growth prospect doing well, [such as QUALCOMM], and companies with debts, little cash, losses, questionable business growth prospects and not much hope [such as Leap Wireless, Globalstar, Global Crossing, 7.24 Solutions and a host of others]. I think Uncle Al's brief is to defend the value of the currency. Therefore, as soon as the economic stability of the world is more or less assured, he'll start raising interest rates. That will mean companies with $$billions in the bank will get a big boost in profits and those companies and people with debts will be sent to the wall. Their assets will be acquired by the thrifty people with age-old verities, proven over millennia. The overall effect will probably be a decline in the markets [I guess]. But maybe not. I'm waiting to see. The Aztecs wish to stand on the sidelines and defeat the US$ and Q currencies, bringing back the gold standard. They wish to have people digging gold as money. What a ridiculous idea. Gold has uses, from jewelery to electronics. Gold has some residual use as money, just as horseshoes have residual value in transport for a few people. The battle with the Aztecs will be won, just as the Neanderthals lost to we Cro-magnon chimpoids. I changed my position in that I moved from being a borrower to being a lender. I ditched Globalstar and Global Crossing [Global Crossing after a one week stand]. Also sold a big bunch of Mighty Q! at $66 and high 50s [and a few at $50] to get rid of all debt [which is an admission that US$ has greater power than Q at those prices]. I have been surprised by how far down things have gone, but given that anti-free-trade GeorgeW with confrontation as his byword doesn't seem to have the allure of Bill Clinton, I can see that things can go a way down yet. There is still plenty of market clearing to be done. Aztecs shall be vanquished. Gold will revert to production cost plus an element of profit. There's no magic in gold. Uncle Al will not let gold get the upper hand. Mqurice