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To: Sarmad Y. Hermiz who wrote (66053)	7/2/1999 4:24:00 PM
From: GST	Read Replies (2) \| Respond to of 164684

Sarmad -- we can talk about interest sensitivity of nets later -- but let me use a simple analogy to portray two views on the nets. Net stocks are like kindling wood on fire. You look and talk about the type of wood, how well the wood is arranged to burn most efficiently and things like that. What I point to -- interest rates and liquidity -- can be understood as the OXYGEN that is required for combustion. What may appear to you to be a 'small' change in interest rates is decisive in determining the dynamics of the burning process. Kindling needs lots and lots of oxygen. Since last October the fire has been 'supercharged' with forced induction of oxygen. The end of supercharging cools the fire. The actual cutting off of oxygen would put the fire out entirely. This is why the 'oxygen' trend is so important. Finally, there is the supply of wood itself -- the size of the growth opportunity -- at this point there is more wood in Asia.