Replies to post #16203 on The Black Box

[WinLoseOrDraw]

if i have a company with 100 employees in manhattan, and i fire 90 of those employees and replace them with 150 employees making half as much in some distant land, and i do the same amount of business, will the Fed think my productivity is up, down or unchanged?

[wahz]

I like this part:

"This report is extremely important for two reasons. First, it shows why the fears about strong job growth, rising inflation and rising interest rates that pushed bond yields up by 50 to 70 basis points last month are unwarranted. Demand is not growing quickly enough to offset the incredible growth of productivity that is driving the growth of the U.S. economy. Output will continue to rise, but job growth will remain subdued, labor costs will continue to fall, inflation will remain under control and profits will continue to grow.

Secondly, for Wahz stay solvent, he is going to need a miracle involving a turn around of historic, mind boggling proportions involving communication spending. This report says he is going to make it, despite his best efforts to screw up his portfolio."

yeah I like that Rutledge guy

[sylvester80]

Not all companies are created equal. Big companies -- those best positioned to capitalize on high-speed telecommunications and most able to deploy fast communications networks -- knocked the cover off the ball.

Is that before or after the Nortel blowup? I would assume before as we have yet to get the after numbers. :)

The big story right now is rising rates and inflation (and the rocketing oil prices). I don't know what Rutledge is smoking but inflation is rising (all you have to do is look at commodities). And eventually that inflation will find its way into the consumer me thinks. (in fact in certain areas it already has).

Interesting article never the less. Thanks for posting it Chris.