Altogether nuts: manic markets don't have the patience for real business.

• Author: Rundles, Jeff
• Position: Column

Ok, like everyone else in the country. I have been enjoying the economy of late: the largest economic expansion of the post-war period, the pundits like to call it. I have basically held my tongue and pen watching the corporate machinations because I just figured I had missed something, that in spite of the fact that it looked a little loopy to me, it has been, in fact, marvelous business-making.

Well, it hasn't. It's not just loopy, it's altogether nuts. For some reason known only to students of psychology, I have been intently watching the stock markets over the last couple of years, riding the roller coaster down and up (mostly up), and reading the Wall Street news to see if I could ascertain the magic of it all. One day up 150 points, and the news says "investors bullish on favorable interest rates:" the very next day down 125 because Fed Chairman Alan Greenspan burped at lunch and it was taken as a sign that he felt the need to bring rates up.

This goes on every other day. Up Down. Happy. Sad. Bullish. Bearish. Manic. Depressive.

If the stock market was a person, the diagnosis would be severe bipolar disorder. The therapy: heavy medication. Actually, taking meds in mass quantities can be the only explanation for much of the action in the market. How else can you explain the spectacular, unbelievable stock market performance of the shares of Internet commerce companies which day-to-day lose tons of money on their alleged businesses? In fact, some have no real business at all yet. Aren't delusions of grandeur another reason for professional help?

I wonder if there is real economic expansion at all. Taking a long hard look at the AT&T deals of late has me wondering if the economy is, after all, just an illusion.

AT&T, the former Ma Bell, was at one time just about the only telecommunications company in the country. That was, of course, before any of us knew, or thought we knew, what telecommunications was. For the last several years the former giant was nothing more than...