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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Londo who wrote (6893)	8/13/2002 11:44:56 AM
From: Biomaven	Respond to of 52153

Londo, But don't forget a significant difference between the US and Japan - the Japanese banking system is a disaster. The Japanese have never quite recovered from the popping of their real estate bubble and the collateral damage it did their banks. By contrast, the US banks seem to be emerging relatively unscathed from the dot.com/telecom bubble here. (Obviously there have been some flesh wounds to the banks, but nothing terminal). At this point in the US, it's hard to see much in the way of inflation on the horizon. There's just so much slack in the system that I don't see much in the way of wage inflation or raw material inflation any time soon. (Of course if we invade Iraq, and/or Saudi Arabia deteriorates we may yet see some serious rises in oil prices). Peter

To: Londo who wrote (6893)	8/13/2002 12:22:10 PM
From: Ian@SI	Read Replies (3) \| Respond to of 52153

[ot] economy stuff... And if this does work - we see large magnitudes of inflationary growth. Take your pick. With capacity utilization near a multi-decade low at about 76%, the odds of inflation are substantially reduced. Any company attempting to raise prices will simply lose market share. Similarly until capacity utilization gets back to the mid or upper 80s, lowering rates will have only a marginal affect on stimulating CapEx growth. Supporting innovation could cause some companies to junk old capacity and replace it with new, improved capacity. But lower rates alone aren't enough. Government policies which stimulate consumer demand will help. e.g. - getting the long term rates down could stimulate housing growth.