To: Rick who wrote (8705 ) 5/27/1998 12:38:00 PM From: RocketMan Read Replies (2) | Respond to of 50264
Rick, congratulations for taking profits at 6 and watching it "tank" to the 5's. If you notice, we are in the sevens now and climbing. But I respect your choice. However, I want to address in more detail your concerns. What you are seeing worldwide today is the throes of an economic revolution that began in the mid-80's with the collapse of the old Soviet Union. Even though that was a political, rather than an economic, collapse, it has had far-reaching economic consequences. The reason is that world economies, particularly in developing countries, were hedging between controlled economies (the Soviet model), and free market economies (the US model). Western Europe leaned towards the US model, but had strong socialist components. Eastern Europe was completely under Soviet control. Asia (excluding China), was technically free but tightly controlled, being pinched between strong traditions of what we wouls call "crony" capitalism, a communist nuclear power to its west, and strong tade with Pacific Rim countries including the US. So their economy was stretched tightly between a lot of rubber bands, and Uncle Sam was propping it up for fear or losing influence to Russia and China. All of that changed when the Soviet Union collapsed, and the US got more or less a free rein with our economic model. We were left as the only superpower, with the strongest economy, and with no need to play artificial games with economies out of political concerns with the communist block. The problem, however, is that economic transitions are not uneventful and peaceful. So we have been tiptoeing around waiting for this to happen. Russia has been a basket case for many years now, and it is exacerbated by the Asian economic revolution that is taking place. But before a new economy can emerge, the old one must collapse. The trick is to get through the transition without a total collapse, and that is where the IMF, the WOrk Bank, etc steps in. So what does this have to do with digitcom? Well, Digitcom represents the new paradigm in communications! So when these economie emergy, whatever form they take, they will use IP-based telephony. And we will own one of the cornerstone companies in that endeavour. In the meantime, the companies that will hurt are those stuck in the old paradigms. If you are worried about world economic condictions, you should conider selling your AT&T's and buying DGIV's. Enough for now, my fingers are tired.