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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: schrodingers_cat who wrote (143259)	6/22/2002 11:16:41 AM
From: Oeconomicus	Read Replies (2) \| Respond to of 164684

"tech stocks are not cyclical, they have much more downside" No, cat, that's not what they're saying at all. It more along the lines of "tech stocks are not cyclical, they have unlimited downside." Oh, and don't forget "all managements are corrupt," "all books are cooked," "all companies with debt are bankrupt," and "free cash flow doesn't matter." ;-)

To: schrodingers_cat who wrote (143259)	6/22/2002 2:47:51 PM
From: GST	Read Replies (2) \| Respond to of 164684

5% growth is a mirage. Inflation was held in check by a strong dollar. Interest rates were kept low by a strong dollar. A drop in the dollar will trigger higher interest rates even if the fed does nothing -- interest rates are set by the market. The market is global and the US is the world's biggest net debtor to foreign investors by far. A slide in the dollar will hurt exports of Japan and will choke off our exports to Japan. Same with Europe. 5% growth is a mirage. The dollar is unsustainable. Low interest rates are unsustainable. The recovery is either "soft", "very soft" or "already over". Foreigners are selling. There is no way to keep the stock market at current prices without their money flowing in by the billions every day. There is no way to keep the dollar at current prices without their money flowing in by the billions every day -- every day. And if those inflows, which have already slowed, become an outflow, then we are going to see what a bursting of the dollar bubble really means to our economy.