to employment?
Dana
----- Original Message -----
From: Won Lee <[EMAIL PROTECTED]>
Date: Mon, 27 Sep 2004 14:39:31 -0400
Subject: Re: The Election and The Economy
To: CF-Community <[EMAIL PROTECTED]>
At 14:23 9/27/2004 -0400, you wrote:
>The recession did not start until 2001, but the economic meltdown started
>in 2000. Look at a chart of the NASDAQ index from January 1999 to December
>2000. You see a massive spike followed by a massive selloff.
>
>I have an uncle who is a head trader with Morgan Stanley. I remember
>talking with him in the summer of 2000 as the stock market was tanking,
>and he was very negative. He figured the market was just going to go down
>and down and down, because the hype around the Internet economy didn't pan
>out. And he was right. No one was making money. Eventually the investors
>wised up and pulled their money out of all the pretenders. Silicon Valley
>became the Internet Cemetary. Once the investors pulled out it was only a
>matter of time before there were layoffs.
>
>Now toss in the massive fraud committed by several large companies (Enron,
>Worldcom, Adelphia, etc.) during the 90's. Those companies crashed in
>spectacular fasion during the Bush administration, but due to earlier
>wrongdoing. And they laid off LOTS of people. What caused this massive
>spike in fraud? Greed, certainly, and poor board oversight. But I believe
>President Clinton set a terrible ethical example during the 90's. Lots of
>people looked at what he did over the years and said, Hey, the President
>can get away with it, why not us? But this isn't about Clinton.
Ahh. That is my bad. I assumed you meant recession when you used the term
meltdown. Yeah in March 2000 the QQQs hit an all time high of
120.50. Interestingly enough I associate 2001 with economic troubles
because that was when I lost my job. Of course any economist will tell you
that the price of the indexes are a leading indicator while jobs are a
lagging indicator. So while we didn't officially hit recession until 2001
the problems could be plainly seen, by those looking for it, in early 2000.
So your uncle is a head - again I'm going to assume- equity trader for
Morgan? Hmm. We need to have a talk =P________________________________
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