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Pastimes : Don't Ask Rambi -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (21458)	4/12/1999 6:09:00 PM
From: accountclosed	Read Replies (2) \| Respond to of 71178

I have printed this thing...seven pages...give me a little bit to read it...

To: Ilaine who wrote (21458)	4/12/1999 8:02:00 PM
From: accountclosed	Read Replies (4) \| Respond to of 71178

Ok, let me take a stab on this Loral dude. It really does look like it is one page of new paradigm stuff and six pages of Loral propoganda. I don't know much about Loral or satellite businesses. But as far as the new paradign stuff. 1. Technology - My experience is that technology is a race to remain competitive not a profit center for business. I will probably use this argument over and over...but here goes...If I can more efficiently run my business than the guy across the street because of technology, might I not lower my price to gain some of his customers? If neither I nor the guy across the street lower our price and keep collecting fat margins, isn't there a strong incentive for someone else to raise the capital to also compete in our business? 2. Productivity - Same argument. If I can really, actually achieve more production with the same labor force and thus gain more profits...isn't a competitor in the same position as me...and doesn't the lower the price or invite new competition model apply? 3. Peace dividend - Someone forgot to tell Boris Yeltsin. 4. Information is king - this has been said for years. Originally the idea was whoever had the information had the keys to the kingdom. Lexis/Nexis were just small models of what was to come. All information was going to be sold in packets to users. That model has broken down on the internet as people are jumping all over themselves to give away information to get advertising hits. I know I no longer subscribe to the wsj, barrons, worth, etc. etc. Why should I, I get totally flooded with information. ===== I think the real problem with the new pair of dimes is that it fails to realize that returns on capital are self limiting. Are we going to allow the top 50 companies own the world? Or are we going to legislate against them? If yahoo can achieve a huge market cap, is the world going to stand by or launch lcos, xcit, go network by dis, etc. If magnificent returns are available, there will be competition which in turn limits returns. The mechanism is self limiting. The business cycle can't be repealed. If the returns are there, the capital will follow until there is too much chasing too little. Businesses will fail. Balance in all things. bwdik bwdik bwdik bwdik bwdik.