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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (1618)	6/23/1999 12:21:00 PM
From: Sir Auric Goldfinger	Read Replies (2) \| Respond to of 3543

You are absaeffinglootly right! Why the tulips have more to go, much more: interactive.wsj.com "What it shows is a model of stock-market valuation that is based on the ratio of the S&P 500 Index to "fair value"; to determine fair value, divide the consensus estimate for operating earnings of the S&P over the next 12 months by the yield on the 10-year Treasury bond. As you can see at a glance, by this measure, the market is grossly overvalued, more so, indeed, than it was in 1987 before the crash. And such striking overvaluation, we imagine Mr. Greenspan would agree, reasonably defines a bubble. Moreover, it's a safe bet that he has a more than passing acquaintance with the chart, since the model is the proud handiwork of the Fed. Which may be why he pays it no mind.: