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

To: patron_anejo_por_favor who wrote (21342)	7/16/2002 10:33:18 PM
From: Maurice Winn	Respond to of 74559

Patron, <Right, and DT in bidding $60 billion or so for 3G rights in Germany, asked "Can you take a check, or would you prefer cash?" > If that's an actual quote, it is remarkably similar to an actual quote made by an irrationally exuberant guy I know in Auckland who after successfully bidding for a $10 million [approx] building in the 1980s property speculative boom in NZ, jokingly asked "Do you take Bankcard?", which is a credit card. That was a major warning that the boom was over. Sure enough, down it all went and 15 years later, there is still a bit of tidying up being done [though most was completed in the early 1990s]. Yes, some of the bidding was debt-fueled, but the basis was the expectation of telecosmic glory. If the market capitalisation hadn't been bid up so high, lenders wouldn't have been inclined to lend. Globalstar sold Senior Notes which turned to confetti. People handed over their cash, no debt needed, based on the expectation of financial glory. Yes, you are right, the debt acted as a turbo boost to those irrational expectations. Uncle Al had raised interest rates quite steeply, but still the mania continued. There was whining and screaming already when he had interest rates up high, to stem the madness. If he'd raised them more, people would have gone nuts. Blaming him for the credit issued around the world and fed into the US$ and sharemarket is unreasonable. He'd given warnings. It's not his job to analyse all the industries, just to keep interest rates high enough to maintain the currency. His business is US$ value. Other investments are competitors of his. He raised a vast pile of profits for the US government by printing and lending and raising interest rates. Taxation did well too! That's what a business is supposed to do = return huge profits to the owners and the owners of the US$ are the US citizens. He's done a great job for them. He transferred vast wealth from investors from around the world to the Federal reserve coffers and thence to US citizens. Mqurice

To: patron_anejo_por_favor who wrote (21342)	7/17/2002 1:03:53 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 74559

>>Right, and DT in bidding $60 billion or so for 3G rights in Germany, asked "Can you take a check, or would you prefer cash?" << German Finance minister shows wit sometimes. When receiving the said cash, he explained UMTS as "Unerwartete "Mehreinnahmen zur Tilgung Staatsschulden", which translates as "Unexpected Extra income to pay down the state debt". Ron Sommer was stepped down yesterday - a sacrificial lamb to the preelection sparring.