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.

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

To: TobagoJack who wrote (22437)	8/9/2002 10:45:12 PM
From: AC Flyer	Read Replies (1) \| Respond to of 74559

>>Also bad for GX's competitors, their bond and shareholders, suppliers, employees, and near-future funding of any tech rollout, along with people's retirement plans, etc, and funding for that hospital, and this education facility, all trying to sup from the same poisoned capital pool.<< You paint with too broad a brush, Jay. It's certainly bad for GX's bond and shareholders, but that's history now. It's also bad for GX's competitors, who must now compete with a player whose depreciation and interest expense is negligible. But competition drives productivity, and GX's competitors must now get serious or go under. Net result - really inexpensive telecommunications. GX has been the long distance telephone provider to my business for the last couple of years. 4.5 cents per minute, 24/7, 6 second billing increments and the phones keep working. >>... by your logic, that white elephant of a airport and the redundant bridge to nowhere in Japan is all good<< Possibly. You could also say that about the (English) Channel Tunnel. The world's major infrastructure investments have rarely brought a profit to their original investors if privately funded - this topic has been previously addressed at length with more skill than I can muster - but they do bring long term benefits to their users and provide a means to facilitate future capital accumulation. >>the market clearing price may in fact turn out to be around 0.05 to 0.10 Euros on the Dollar<< That's a joke, right?

To: TobagoJack who wrote (22437)	8/9/2002 11:51:19 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 74559

Hello Jay, philosophically, any capital destruction, waste and mistakes are bad. But that's life in the fast lane. The important issue is to be in a position to use the waste products, the over-built fibre networks and fix the mistakes. Fortunately, QUALCOMM is in position to enable CDMA subscribers around the world to benefit from Global Crossing's demise and the huge amount of fibre by using it to deliver cyberspace via cdma2000 gadgets to anywhere people want it. Note that the now infamous W-CDMA is another example of huge capital destruction. QUALCOMM is working to clean up that mess too. Busy, busy, busy! Message 17860532 Because the price of that fibre will be low, to fill it and maximize revenue and profit, QUALCOMM is the main beneficiary, other than the cyberspace users who get the even more important consumer surplus [it's the end users who win, even more than the crustaceans]. Mqurice