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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: paul_philp who wrote (52535)	8/25/2002 3:26:35 PM
From: LKO	Read Replies (2) \| Respond to of 54805

It is hard not to agree with Krugman but since my liver would turn to stone if I ever agree with him, I won't. The only thing missing from his analysis is the impact of the bubble. The excesses and fraud we are seeing are a feature of bubbles. Another possibility is that the corruption may have been one of the factors causing the bubble. If Gretchen is more easy on the liver than Krugman, here is a piece that explores that theme (link access free with regn for a few days more) nytimes.com Deals Within Telecom Deals By GRETCHEN MORGENSON Much about the telecommunications bubble remains unexplained. ... "I went to this meeting once and they totaled the number of contracts Qwest had given," she said. "There were 50 companies Qwest had given contracts to for at least $200 million. These companies used this as a marketing tool to do their I.P.O. but the contracts had such tight performance specifications to sell the product that they couldn't possibly meet them. At end of day Qwest never had to meet any of the contracts. But the companies used Qwest as their main customer. Then they would go public and Qwest would flip out the stock," or sell it quickly