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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (37470)	7/22/2008 8:22:02 AM
From: elmatador	Respond to of 217944

Bad investments? Money invested in bubbles is "stolen" from other sectors that starve for capital. The result is that under-investment comes as higher prices later on. The case in point is the 25 years of under-investment in producing areas of metals, food and energy. Examples of money “stolen” appear as: Tech bubble over-investment created technologies that will last until 2017. It created the auction of 3G spectrum that massively transferred money from mobile operators to European governments. Japanese capital hogging resulted in the Garden of the Japanese emperor palace worth more money than the whole state of California. They will live with that for the rest of their existence. Those orgies are punished. Now look to housing bubble and expect nothing but punishment. New capital hoggers now are doing better they are spreading capital all over the place forced by the need of natural resources: Africa, Asia and LATAM.

To: dvdw© who wrote (37470)	7/22/2008 8:28:53 AM
From: elmatador	Respond to of 217944

Once investment is bad, adjustments follow: duplication of investments in technology lead to destruction of margins. In the business I am in (telecoms), a plethora of companies invested but the market did not appear. Their investment was for nothing. So you had 6 companies investing in R&D competing with each other and operators who buy their gear putting them to fight against each other bidding in an spiral to death. The logical result was merging: Lucent –Alcatel Sony-Ericsson Nokia-Siemens And now remains Nortel and Motorola to merge soon. A whole generation of cheap technology developed during the tech bubble was downloaded to China and the Chinese came out with Huawei and ZTE to eat on the profits of the merged western companies.

To: dvdw© who wrote (37470)	7/22/2008 8:40:29 AM
From: elmatador	Respond to of 217944

The fall of the Indian engineer. Everybody and his uncle to cash in on the bubble. Out came the Indians with managers for the operators and hordes of Indians to offer outsourced services. London shares down midmorning; Vodafone plunges after revenue warning forbes.com Today Vodafone is going down and Arun Sarin -the poster bioy of Indian engineer- is in his way out. Bangalore created a tech ghetto right on the middle of the real India... The India that result of the Tech bubble will need to move into a new player: producing food, energy and materials. Tehc bubble was bad.