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

To: Mike M2 who wrote (26408)	12/20/2002 12:10:35 PM
From: GraceZ	Read Replies (1) \| Respond to of 74559

IMO It created an environment where companies were brought public not with the intention to create a viable business but rather to cash in on the bubble. This is true, I agree. This goes back to my statement about what it is that motivates people to do great things. Having money doesn't do this, it's trying to make money that motivates people. The malinvestment has a lot to do with too much money. What motivates people to create these types of sham enterprises is a big pile of cheap money. The remedy is to make money more dear. Certainly the equities markets and bond markets are well on their way to making money more dear even while we have the FED artificially holding a negative real cost of money. We now have a big pile of cash searching fruitlessly for risk free yield. It's in this capital starved environment that the strong companies will emerge. The great thing for the glass half full people like myself is that they're a lot easier to find in this environment then they were in the false boom created by WS throwing too much money around. I never underestimate the destructive force of too much money, on companies, sectors or people.