Cypher

260 00:27:48,536 --> 00:27:50,120 Did you take the pills I gave you? 261 00:27:50,329 --> 00:27:53,541 Had the noises in your head started to go away? 262 00:27:53,541 --> 00:27:57,253 - And the recurring dreams? - Jesus, what is this? 263 00:27:57,461 --> 00:28:01,048 W-w-why didn't Digicorp check my transmission in Omaha? 264 00:28:01,257 --> 00:28:03,133 There was no transmission in Omaha. 265 00:28:03,133 --> 00:28:05,719 Or in Buffalo. Or anywhere else. 266 00:28:05,803 --> 00:28:08,097 Why do they send me to these conventions? 267 00:28:08,848 --> 00:28:11,517 - The conventions are charades. - Charades? 268 00:28:11,517 --> 00:28:16,438 You and the other convention guests all work for Digicorp. You're all spies. 269 00:28:16,939 --> 00:28:19,483 You're given phoney assignments, phoney identities. 270 00:28:19,692 --> 00:28:22,027 You think your pen is a transmitting device, 271 00:28:22,236 --> 00:28:25,072 another guest thinks it's his tie clip or her watch. 272 00:28:25,281 --> 00:28:27,783 The whole thing is just a ploy to keep you all distracted, 273 00:28:27,992 --> 00:28:30,452 to not realize what's really going on. 274 00:28:31,370 --> 00:28:33,414 What is really going on? 275 00:28:34,999 --> 00:28:39,211 If you want answers, take the shot. 276 00:28:49,930 --> 00:28:52,516 When you're inside the room, act as you always act. 277 00:28:52,975 --> 00:28:54,935 Order the mineral water. Drink it. 278 00:28:54,935 --> 00:28:56,520 Don't make them suspicious. 279 00:28:56,604 --> 00:28:58,606 The shot we gave you should protect you. 280 00:28:59,356 --> 00:29:02,443 It should protect? What'd you mean? What if it doesn't? 281 00:29:02,610 --> 00:29:04,778 Listen to me carefully. 282 00:29:04,820 --> 00:29:07,031 Whatever happens in that room, 283 00:29:07,490 --> 00:29:11,619 show no reaction, no emotion, no surprise. 284 00:29:11,619 --> 00:29:16,624 No matter what you see, do not move. 285 00:29:17,541 --> 00:29:21,170 What will I see? 286 00:29:25,883 --> 00:29:29,512 - Who sent you? - A friend. 287 00:29:29,720 --> 00:29:32,848 I don't have any friends. 288 00:29:33,057 --> 00:29:37,853 - When will I see you again? - Soon. 289 00:29:38,812 --> 00:29:41,315 I promise. 290 00:29:45,277 --> 00:29:50,699 There are several points of interest here. First of all, the fact, that 291 00:29:50,699 --> 00:29:54,078 by an impressive margin, new home purchases 292 00:29:54,370 --> 00:29:56,997 took most of the brunt of that decline. 293 00:29:58,457 --> 00:30:00,709 By this I mean that sales of older homes 294 00:30:00,709 --> 00:30:02,419 are done on an individual basis 295 00:30:02,419 --> 00:30:05,214 where there's considerably more room for negotiation. 296 00:30:05,214 --> 00:30:09,426 Therefore, in those sales we're more likely to find 297 00:30:09,510 --> 00:30:13,264 that the official rise in mortgage rates has been offset 298 00:30:13,264 --> 00:30:17,643 somewhat by the ...rates of return on high tech investment, 299 00:30:17,852 --> 00:30:21,021 which led to a surge in business capital spending 300 00:30:21,438 --> 00:30:25,776 and significantly increased the underlying growth rate of productivity. 301 00:30:25,776 --> 00:30:29,989 The capitalization of these higher than expected returns 302 00:30:29,989 --> 00:30:31,824 boosted equity prices 303 00:30:31,824 --> 00:30:37,621 generally beyond even that expected by the enhanced rise in real incomes. 304 00:30:37,872 --> 00:30:40,457 The elevated level of light vehicle sales, for example, 305 00:30:41,041 --> 00:30:45,087 has put more vehicles on the road than the industry could sustain. 306 00:30:45,087 --> 00:30:48,048 And even though demand for the number of high tech products 307 00:30:48,257 --> 00:30:50,301 was doubling or tripling annually, 308 00:30:50,509 --> 00:30:54,054 in many cases new supply was coming on ever faster. 309 00:30:54,054 --> 00:30:56,974 Overall capacity in high tech manufacturing industries 310 00:30:56,974 --> 00:31:00,227 rose nearly 50 percent last year, 311 00:31:00,227 --> 00:31:03,147 well in excess of its rapid rate of increase. 312 00:31:03,189 --> 00:31:08,861 Accordingly the slowdown in the economy that began in the middle of last year intensified, 313 00:31:08,861 --> 00:31:12,907 perhaps even to the point of growth stalling out around the turn of the year. 314 00:31:13,115 --> 00:31:17,203 As the economy slowed, equity prices fell, 315 00:31:17,411 --> 00:31:20,122 especially in the high tech sector, 316 00:31:20,206 --> 00:31:24,126 where previous high evaluations were being re-evaluated, 317 00:31:24,126 --> 00:31:27,963 resulting in significant losses in some investors. 318 00:31:28,172 --> 00:31:31,383 Clearly some slowing in the pace of spending was necessary, 319 00:31:31,592 --> 00:31:36,305