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Non-Tech : C (Citigroup)

C 100.86

-0.7%

3:56 PM EST

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To: JEB who started this subject	8/9/2002 7:09:10 AM
From: Baldur Fjvlnisson	Read Replies (1) of 259

It is actually quite possible that the companies underlying the U.S. stock market are collectively solvent. Just about. Here's why: <<<The Wilshire 5000 Total Market Index Fundamental Characteristics Month Ending 7/31/2002 Total Market Value ($) 10.5 trillion Mean Market Value ($) 1,807 million Median Market Value ($) 111.5 million Weighted Average Market Value ($) 80,328 million Largest Company's Market Value ($) 320.0 billion Smallest Company's Market Value ($) under 1 million Median Share Price $8.16 P/E Ratio 26.4 Price/Book 4.89 Current Yield 1.64%<<< wilshire.com. So; we have a book value of the entire market at $2.1 trillion or so. Deduct from assets a trillion of goodwill, intangibles and accounting fluff designed to deceive and defraud investors and other stuff that banks are unlikely to take as payment. Add to debt hundreds of billions hidden off balance sheets. Some say it's in the trillions. At least Citigroup is becoming concerned about this as you just heard in the news. Discount for a solid tradition of fraudulent and misleading accounting and reporting on all fronts; be it from corporations, government and Wall St. Hence the U.S. market may have a combined book value of as much as 500 billion to a trillion dollars and is therefore currently trading at 10-20 times book. This is good news. The bad news is that scores of companies are totally bankrupt.

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