nhsrikanth1

Wake Up America, You’re Sinking

I agree with some of the assertions but disagree with others,

(1) Illegal immigration is as much a bogey-man as commodity trading being blamed for oil prices. While it is a drain on some resources, it has not much affected the job market. In fact, illegal immigrants add to quality of life of most people by letting them afford services that they otherwise would not have. Just like how cheap oil dampened alternate energy resources, illegal immigration dampened outsourcing. Most illegal immigrants earn subsistence wages and so much of their money stays within the US. In a sense, going forward, with increasing energy prices coupled with reasonably priced labor could bring back the manufacturing jobs that left US.

(2) Fed is expected to tighten credit only to the extent of maintaining some credibility in international markets, but don't expect the dollar to become scarcer as the fed has no gold-standard and can print more paper with impunity.

(3) I agree that only thing that grows with increasing debt is the debt itself. We need to halt the growth of debt but is not required to rollback to the sixties (nor would it be possible). Early ninety post-Bush economy is a good target to shoot for.

(4) Hedge fund oversight is wayyyy overdue. They should be brought in line with Mutual funds and have a level playing field. That, coupled with improved disclosure, will put a stop to much of the fuzzy math models that mask risk up until the point of the model going belly up.

All in all, the rest of the world is catching up to the American way of life and are no longer content to play worker bees and want to share the spoils. We should expect an erosion in our material comforts. We can only soften the landing by (1) improving efficiency and productivity - generating more resources for everyone (2) voluntarily scaling down our life style before we are forced to do so

Foreclosure Stimulus to Boost Tech's Four Horsemen

I think he is talking about the six month foreclosure process during which the "owner" continues to live in his/her house but is not obligated to make mortgage payments. I assume that this includes the period when the owner starts defaulting before the lender gets wind of it and start the foreclosure process. It is only after this 6 month process will an owner be evicted and will need to rent.

Even then, the costs of home ownership is more than what one would rent (based on anecdotal evidence, a person who loses a SF home is more likely to rent a 2 bed apartment not a comparable home). This again provides the person with more disposable income.

On the flip side, a person who lost his/her home to foreclosure is likely to lose credit (either outright or by way of much higher interest rates) and that may limit their spending.

Five Ways to Invest in China and India

Misleading heading, was it motivated by drawing in readers who otherwise have no interest in the TA mumbo-jumbo?

Is VMware the Next Netscape?

jer seems like yet another short who wants to bring down the price by throwing around innuendo that he is very unlikely to back up

Is Wall Street Buying theVMWare Valuation?

I agree. From Wall Street point of view, EMC can't realize its bonanza in one fell swoop. When EMC starts diluting its position, they will get a better picture of VMW valuation. There should be enough time to take additional position on EMC if VM Ware reacts well at that point in time.

Why Would Anyone Buy VMware?

The author is ignorant of the extent of VMWare's leadership in the technology and the fact that the technology just hit critical mass. The growth rates could be higher than what the author considered as ridiculously high in his example.

Next, 85% of the stock is in the vaults of EMC, Cisco and Intel and they don't have any intention of selling out in the near term. The current float is extremely low and the shorts who felt it was overvalued at 60 would have a painful story to narrate.

Google WAS overvalued at $80 based on its then revenue and business. However, it used its IPO money and stock valuation prudently to acquire assets and advance position to achieve market dominance. What is to say VMW (with a strong backing of EMC) can't achieve the same.

EMC is grossly undervalued, least of which is to do with the value of VMW. EMC is the market leader in Network storage and with the market leading VMWare in its pocket, it is bound to increase its dominance. Its main competitors like Network Appliance do not have such synergy though it has similar PE.

Other competitors like Sun, Hitachi, IBM and HP as not core players in the Network space.

All of the above is my personal opionion. Do your own DD.