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Most company balance sheets are a mess. Most of the income growth is due to cost cutting. The balance sheets need to be cleaned up. Revenue needs to grow. These things won't happen until the fear is gone. That may take some time. I think we are on the right path, but I think this is going to be a long and painful growth path.

Hi Kevin,

You can see the lack of interest in any discussion that involves any ideas about what can be done. Bush has managed to completely convince the American public that little or nothing can be done except huge future tax cuts and overthrowing Saddam Hussein and who knows who else.

I agree that some of this is the business cycle and some of the depression in telecom is simply due to the effects of capital misallocation. But one of the reasons the balance sheets are a mess is because nobody is spending on telecom! The suggestion was nothing can be done, the Bush-created low expectations. How about

1. Change the Telecommunications Act so the hundreds of billions will be spent on broadband

2. The Bush Justice Department indicts the criminal enterprise that was WorldCom so it doesn't emerge from Chapter 11 free of debt and free to destroy pricing power of its competitors. The restatement of earnings is up to about 9 billion dollars and growing.

3. Adjust telecom equipment depreciation schedules and targeted investment tax credits.

Yes, it's just one sector but it's a big one and the one in the biggest trouble but it doesn't involve grandiose plans to save the free world so little interest from this administration.

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