rd4sndk

Paulson's Plan Fails to Understand the Problem; Madoff Is a Perfect Example

James... I see your point but I have less faith in your fix and Obamas than I have in Paulson's. Can you answer me this? How is rebuilding a road that is already built will improve real money creation? I can see how it provides jobs for people but the money for those jobs comes from those who are working thus reducing on one hand money supply and increasing on the other. The new roads are not going to make it more efficient to ride on them although it would improve the comfort level. So I don't even see an effeciency component to your plan.

On the other hand, if Paulson can get the present locked up banking system to restart lending, this lending will lower the cost of capital (improved efficiency) and some of it will make its way into the hands of real money creaters (inventors, manufacturers and the like). It is these people that create new opportunities for money and lower the cost of capital by making better more cost effective products.

I believe we must do both Paulson and your plan but if I had my choice of in which one to emphasis my preference would be Paulson's for the immediate term and rebuilding infrustructure second.

Can you tell me the flaw in this logic?

Can You See Apple Under $60?

southbeach... Who the hell are you, that we should believe your reason for Apple's decline and earnings projections? Truth of the matter is that Apple has grown top and bottom line at 30%+ for the past 5 years. That type of growth deserves a P/E multiple of 30+.

However, that's not all this company has done. Cash sits at $25B and growing at a rate of $10B+ annually. Apple has more cash than any CE company and approaching MS like cash flows. Better yet, it has weened itself from its most productive product line (ipods) and added 3 more high growth product lines that are growing 50%+ annually (mobileme, app store, iphone). Additionally, their bread and butter imac is growing above industry standard and is about to become the number 2 PC company in the US. Further, Apple is the smallest player with the highest growth and gross margin, in the largest CE market and is poised to transform that market as it did the mp3 player. Don't forget that Apple is also growing its retail and global footprint that has much more upside than down side.

Finally, with apples pending release of mobile processors created from the acquisition of PA semi, I suspect that they will produce mobile devices that are 20%+ cheaper to make which could catapult Apple into 100 million annual iphone level while also improving ipod GM. At that level and with GM above 45% look for Apples EPS to sky rock and cash flow to reach $15B annually. I personally believe Apple will have $45billion in cash by early 2010 or before. Steve Jobs is building Apple into the Samsung of the West. How about "Applesung" for a new corporate name. Recession or Depression, Apple's revenue and EPS will grow straight through it and you all will be amazed as to how they did it. Before I can believe your prognostications over mine, explain to me how Apple with only 2 years into the mobile market with only one device out sold Rimms entire line of cell phones? Until you can answer that question, please keep your dooms day projections to yourself.