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Strategies & Market Trends : Take the Money and Run -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (10605)	7/24/2002 8:00:10 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 17639

i think we need to understand the similarities AND the differences. for one thing....we don't really know the extent of cover-ups....although we may be getting a large dose of reality in the next few weeks... my underlying concern with the us economy is that we continue in a prolonged phase of "profitless prosperity" until the weaker players are eliminated. i was watching the CEO of Continental Airlines several days ago and one thing he said that struck me was "we're only as smart as our dumbest competitor"....meaning there is no real pricing power. american corporations live or die by cash flow, imo....believing that as long as the can continue to meet operating costs, the economy will eventually recover so if they just "hang in" long enough they can preserve themselves. while that battle to preserve cash flow rages on...competition will be steep...and frankly that is how it should be...the beauty of the capitalistic system.. the only thing that i see that is unusual is that we had an extraordinary expansion, due to increased money flow chasing returns. the internet bubble being the silliest example of how that played out....but the telecoms being by far the greatest example in dollar amounts of what happens when over-capacity is fueled by free flowing cash.