Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Jon Koplik who wrote (19170)	12/5/1998 11:31:00 PM
From: Maurice Winn	Read Replies (2) \| Respond to of 152472

"The article said U.S. intelligence agencies are increasingly worried about the possibility that a potential enemy could disrupt satellite surveillance and communications simply by firing a nuclear weapon straight up and detonating it in space. " Yeah right - can you imagine Russia firing a nuke straight up on a Zenit? It would more than likely nuke them! [That's a cynical Globalstar shareholder talking]. Sounds as though the military intelligence is trying to talk their book some more. Trying to drum up funding to keep the evil commies, Oh, hang on, there aren't many of them left, okay, the evil Chinese capitalists or North Koreans at bay. I thought we were told the North Koreans had all starved? Are they still worried about the Evil Russian Empire? I heard they said they won the cold war. They should just quit playing their stupid games, get a real job, and sign off on Globalstar launching some rockets. Every funds flow dollar into Russia helps their war effort against the USA, so every dollar needs to be cut off if they are serious, not just soldering specs. I wonder if Americans really think Russians, or even just the Russian military bosses, spend their days planning attacks on the USA? I bet the Russian military are more worried about keeping the locals busy and their jobs comfy. Or problems in the East. The PLA in China is too worried about keeping their telecoms cash flow going, so they aren't much threat. On the funds flow business you mentioned, I can see that there would be a lot less interest collected than interest paid since one is tax deductible and one is tax payable. People won't mention the interest collected in some circumstances. But you can bet they'll mention, or even invent, interest paid. As far as the overall effects on the economy, low interest rates should be neutral overall. It is just a matter of who gets to spend the money. By guessing properly, one can benefit from the losers in the interest rate and money printing guessing game. But the overall economic effect should remain the same. Though lower interest rates means less tax paid, which means less going from the private sector to the government sector. The freedom believers like me think that is a good thing and economically productive. The statist collectivists think that is a bad thing and economically destructive. So the statists simply whack another tax on to make up the difference. Or print a whole lot, which causes interest rates to drop, but they get the newly printed SuperDs to spend. So the gainers are those who guess right. I don't think low interest rates makes people hold back on consumption - it makes the lender hold back and the borrower pig out. Since the tax man gets less, they have to hold back too. So the borrowers like me, who watch interest rates drop and the Fed print heaps of money to make the poor lenders get beaten even more, are very happy and do our duty by increasing consumption. Though we borrowers must always be careful to avoid being turned into turkey dinner in the event of a fearful fall in stockmarkets which might cause a margin call at an embarrassing time, resulting in stocks being sold out and consequent poverty. A fine and fairly conservative judgement is needed to avoid that unpleasant result. Which would reduce my consumption and enhance the Little Chicken's. The poor lenders are mutilated with low interest, so after a while at the rotten low interest rates they buy Q! shares, which they have watched increase over the years. Sadly for them, they buy them right at the top, around $200 per share, with interest rates around 3%. So I sell, hold cash, which by then is in increasing demand, so interest rates start rising. And they rise quickly because so many people have figured out that holding cash is the road to ruin so there are few lenders. But there I will be, doing my duty, lending my hard earned cash out at 15%. That will of course cause a big fall in the stock markets as people head for cash to avoid the rotten low dividends they have been receiving and to escape the stock market crashing which will be already underway. When The Q! is back down to $80, I'll swap all my cash for Q! stock. A year or three later, interest rates will start to fall and Q! will be back up to $250. That's my theory anyway. It's sort of like who gets to eat the drumsticks. Aren't roller coasters fun! Mqurice [You did raise the subject of funds flow!]