Current Downturn???

Carl Remick carlremick at hotmail.com
Thu Mar 22 15:57:55 PST 2001



>From: Doug Henwood <dhenwood at panix.com>
>
>>productive investment. So it will be hard to recycle all that
>>excess machinery without new capital investment in production that
>>could re-absorb this excess. That is the present dilemma.
>
>Remember, though, that a lot of this surplus capital equipment
>becomes obsolete very quickly ...

That's the way Wall St. has been spinning it, but is the need for ever newer high-tech infrastructure *that* compelling? First of all, aren't at least some of the advances offered in next-gen equipment similar to the spurious bells and whistles that Microsoft's always introducing to keep sales of old software perking along? Second, even if new equipment does offer some advantage, why bother to invest in it in an iffy economy if none of your competitors are? Once recessionary forces take hold, they become self-reinforcing.

Carl _________________________________________________________________ Get your FREE download of MSN Explorer at http://explorer.msn.com



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