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Politics : Ask Michael Burke

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To: Cynic 2005 who wrote (60743)	5/26/1999 1:53:00 PM
From: Mike M2	Read Replies (1) of 132070

Mohan, yes the change in corporate behaviour due to the proliferation of stock options has a been a major accelerant to this mania, however this limits as many companies borrow to buy back shares. Both the individual and corporations are leveraged at or near record levels. At some point a liquidity crisis will result in a most severe dose of tough love for many. BTW in 4Q 98 corporate buybacks exceeded earnings by a substantial margin- not sustainable for those who understand leverage has its limits. mike

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