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       from Gilder Publishing
         THE FRIDAY LETTER
e-mailed weekly, for friends and subscribers
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Issue 34.0/November 16, 2001

HEADLINES:

* The Week/ Capital Crisis
* Friday Feature/ Who Authorized This?
* Friday Bonus/ Intel's Accidental Revolution
* Telecosm V Tapes
* Poll Question/ Military Tribunals
* Readings
* Subscribe / Unsubscribe Information

OFF NEXT WEEK
Due to the Thanksgiving Holiday, the Friday Letter will not publish next
week. If you're looking for our news and views after the big turkey day,
then visit http://www.NFL.com/, that's where we'll be.

Enjoy your Holiday,
The Friday Letter Staff
~~~~~~~~~~~~~~~~
THE WEEK/ Capital Crisis
By Bret Swanson

"What mainly ails the U.S. economy is too much of a good thing," intones
Princeton economist and New York Times columnist Paul Krugman. "Excess
capacity," too much capital, "is a drag on investment, and hence a drag on
the economy as a whole." Business investment will rebound, he casually
assumes, but to solve the investment problem in the meantime we should
"promote spending."

Leo Hindery, Jr., the former CEO of Global Crossing, an international
fiber optic network, agrees. "The problem with overcapacity is, it doesn't
just ravage (profit and loss statements), but it ravages banks and
employment," he told Bloomberg. "Tax cuts that make me more wealthy are
absurd...So I'm more interested in consumption rising almost everywhere."

Why do we hear this common refrain from friends on both the left and the
right, from politicians, businessmen, and even most economists? It seems
Alan Greenspan's irrational exuberance stuck in our brains and was never
purged by the evidence of real productivity gains and wealth creation in
the late 1990s. Now, with the economy more than a year into a slowdown,
Washington and Wall Street have seized on the agile chairman's permission
to blame business first.

The problem with Paul and Leo's take is, scarcely anything but investment
and entrepreneurship matter to future growth. Find out how, read the
entire article http://www.gilder.com/

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FRIDAY FEATURE/ Who Authorized This?

What America is based on is not the achievement of some goal, the capture
of some trophy, or the triumph of success. It's about the process of
seeking something. It's about incompletion, dissatisfaction, striving,
imperfection. In the late 18th century, this was a statement in itself. In
the Europe of the preceding centuries, armies had gone to war, human
beings had been burned at stakes, monarchs had been dethroned, and
countries torn apart because imperfection wasn't enough. From the
Inquisition to the Reformation, religious fanatics had demanded that the
state enforce holiness, truth, and virtue. Those who resisted were
exterminated. Moreover, the power and status of rulers derived from their
own perfection. Kings and queens commanded artists to portray them as
demi-gods. Dissenters were not merely troublemakers; they were direct
threats to the perfect order of the modern state. This was a political
order in which everything had to be perfectly arranged, even down to the
internal thoughts of individual consciences.

Enter the Americans...
Hop over to http://www.forbes.com/asap/2001/1203/014.html where our good
friend Andrew Sullivan reminds us what power four little words -- the
pursuit of happiness -- still have. And what carnage they must still
endure to survive.
~~~~~~~~~~
SHOW OFF YOUR PATRIOTISM!
Gilder Publishing makes available to its subscribers, a limited stock of
1955 reproductions of the Declaration of Independence.  These
inspirational masterpieces have been hailed as authentic re-creations of
the original by some of our more formidable institutions -- namely the
National Archives, Independence Hall and the Library of Congress.  Order
yours either framed for $399 or unframed for $199!  Click on the link for
all the information.
http://www.gilder.com/declaration/index.asp
~~~~~~~~~~
FRIDAY BONUS/ Intel's accidental revolution

"The Intel 4004 Microprocessor, which debuted thirty years ago Thursday,
sparked a technological revolution because it was the first product to
fuse the essential elements of a programmable computer into a single chip.
Since then, processors have allowed manufacturers to embed intelligence
into PCs, elevators, air bags, cameras, cell phones, beepers, key chains
and farm equipment, among other devices."

But that's not the way the story was supposed to turn out...

Go celebrate the 30th anniversary of the Intel 4004 Microprocessor, relive
the history, and don't forget to check out the special reports on
Designing the Next Generation of Microprocessors
http://www.computerworld.com/resources/specials/0,4513,RLS1525,00.html
~~~~~~~~~~
"The best Telecosm ever," George Gilder concluded, after the Technologies
of Freedom discussion wound down the fifth annual confab. The best ever?
This year? How can that be? If you heard Carver Mead explain how neural
networks will keep us safe, or George Gilder tell us how deflation can be
overcome, or Eric Schmidt hold forth on data mining, or Peter Huber
describe the ultimate "killer app," you would understand.

Miss out on the conference? Well, it's not too late to HEAR "The best
Telecosm ever!" Order your set of Telecosm tapes today at
https://www.gilder.com/telecosm/

 =-=-=-=-=-=-=-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-=-
Gilder.com Poll: Are you concerned about bioterrorism?
Terrified - 3%
Worried - 35%
Not Worried - 62%

Up Next: Do you agree with President Bush's decision to try civilians
before secret military tribunals?
Weigh in now at http://www.gilder.com/
~~~~~~~~~~~~
READINGS

Corning Sees Turnaround in Mid-2002
http://www.siliconvalley.com/docs/hottopics/telecomm/044524.htm

Global Crossing In Talks to Alleviate Debt Burden
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT387ERF0UC&live=true&tagid=ZZZPCGI2B0C&subheading=telecoms


AT&T-AOL Advancing Cable Talks
http://www.nytimes.com/2001/11/16/business/media/16CABL.html

Lucent Sells Optics Unit For Lower Price
http://news.ft.com/ft/gx.cgi/ftc?pagename=View&c=Article&cid=FT34BD8H3UC&live=true&tagid=ZZZPCGI2B0C&subheading=telecoms


SBC-Yahoo DSL Venture
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/11/14/financial1347EST0078.DTL&type=tech


Juniper to Buy Pacific Broadband for $200 Million
http://www.nytimes.com/reuters/technology/tech-telecoms-juniper.html

Dell Rebounds After a 2nd-Quarter Loss
http://www.nytimes.com/2001/11/16/technology/16DELL.html

Ebay: Fastest Growing Tech Firm in U.S.
http://ecommercetimes.com/perl/story/14776.html

Dell Calls Ceasefire In PC Price War
http://www.zdnet.com/zdnn/stories/news/0,4586,5099696,00.html?chkpt=zdnnp1tp01


Outsourcing Bolster's IBM
http://www.atnewyork.com/news/article/0,1471,8471_924331,00.html

Innovation Is Back, With Attitude
http://www.nytimes.com/2001/11/11/business/yourmoney/11SLAS.html

E-Marketplaces Live
http://www.line56.com/articles/default.asp?NewsID=3145

Focus On Customer Service
http://www.internetweek.com/story/INW20011114S0005

Traffic Hits Web Sites After Crash
http://www.nytimes.com/aponline/technology/AP-Crash-Internet.html

Internet Servers Vulnerable to Attack
http://www.nytimes.com/reuters/technology/tech-tech-icann-security.html

Net Traffic to Leap 10-Fold in 2 Years
http://www.ftmarketwatch.com/news/story.asp?guid=%7B4F5266EB%2DDFEE%2D402F%2D9891%2D4DCBD4EAE67D%7D


COMPUTERWORLD Covers COMDEX
http://www.computerworld.com/resources/specials/0,4513,RLS1525,00.html

Divided We Stand
http://www.wired.com/wired/archive/9.12/defense.html

The Economic Effects of the Stimulus Plans
http://www.heritage.org/library/cda/cda01-09.html

Single Molecule Transistor
http://www.cnn.com/2001/TECH/ptech/11/08/tiny.transistors.ap/index.html

Close the Window On Virus-prone Outlook
http://www.latimes.com/technology/la-000091345nov15.story

Console Wars
http://www.redherring.com/technology/games.shtml

The Ultimate Jam Session
http://www.wired.com/wired/archive/9.11/singapore.html

The Grapes of Math
http://www.wired.com/wired/archive/9.11/wine.html

A Holiday Buying Guide to Technology
http://www.nytimes.com/2001/11/15/technology/circuits/15GUID.html

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FRIDAY LETTER STAFF
~~~~~~~~~~~~~~~~~~~~~~~
Dave Dortman (ddortman@gilder.com)
John Hammill (jhammill@gilder.com)

CONTRIBUTORS THIS WEEK: John Hammill, Dave Dortman, Spencer Reiss, Sandy
Fleischmann, Aaron Charlwood

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