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To: Lizzie Tudor who wrote (47031)	6/14/1999 6:59:00 PM
From: BGR	Read Replies (1) \| Respond to of 86076

Michelle, It's a one-two punch. Inflation threat, margin. Bond sell of, forced liquidation. Now the yields going down but marginned positions need to be cleared. Those who are selling ebay over the recent outage, of course, have never maintained a production system. Outages are part of life. They happen in banks and hospitals (and we do not even know of it). Of course, depending on the product architecture one bad cluster or block may cause the entire system to trip as it seems to have done in ebay's case, but I would find it surprising that in these days of fault-tolerant systems such stoopit (myth trademarked) designs to be common. Otherwise, folks may stop using ATMs as well, in fear of a system outage. In short, it's one of these one-of-a-kind events which any seasoned consultant would not extrapolate into the future. But then most folks don't understand technology. Back to margin. The recent downturn of 55% average has caused even the most conservative margin user (20%) to get a margin call. I have no way of knowing how much leverage still exists in the market. The sooner it is flushed, of course, the better. Meanwhile, yields are doing what they are supposed to do (go up, that is -g-) and Japan is putting a floor under the dollar. In the meantime, put-call ratio is back up over 50%. IOW, things are looking better than last week. -BGR. PS: Also, I see that Tommasso and Bill Fleckenstein are busy taunting the bulls in the DELL thread. Given that I remain a strong believer in karma (what goes around comes around), this is excellent news for the longs. -vbg-