"Better times" cannot sustain stock prices

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sun May 3 15:00:40 PDT 1998


Dennis R Redmond wrote:


> Business cycles are a thing of the past, eh?

Don't twist my words: I said that boom-bust (marked by extremes) have been tamed, not eliminated. Low (but positive) growth, low (but positive) interest rates, low (but positive) unemployment; these are all the product of agressive Fed policy.


> As far as stock options go, these are mostly concentrated in the
> hands of high-flying professionals, managerial elites and rentiers,
> not line workers.

This is changing rapidly as other industries see that there is free money in using employee stock options as part of a compensation package. I expect this trend to continue in the US.


> Only 40% of American workers even have the pension funds
> currently falling over themselves to invest in the Nifty Fifty.

The number of workers who have access to a retirement benefit plan (more than 'pensions') is closer to 65-70%.


>> Is it just because we're not building factories?
>
> Corporations are building them in *other countries*, like
> Thailand and Mexico, is all.

Do we really need more factories in the US?

But you forgot to answer my question: is it only because you don't see the investment in things like communication infrastructure that you think we're not making investments?

/jordan



More information about the lbo-talk mailing list