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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (64225)	7/9/1999 9:53:00 AM
From: Mike M2	Read Replies (2) \| Respond to of 132070

Joan, Andrew Smithers calculated that if the true cost of employee stock options were reflected in the income statement the PE on the S&P would be 55 at the end of 1997 and 63 at the end of 1998. The situation has gotten worse of course- my guess based upon extrapolation is 75 HO HO HO. The last time I looked NASDAQ 100 PE was 107 -probably higher now . SOME OTHER IMPORTANT POINTS -I have often heard that Japanese accounting tends to understate earnings but I can't quantify its impact. In addition, during Japan's boom they had much higher savings rate, productivity, trade surplus. I don't have any debt figures but I am sure that the US is much more indebted in a big way. Mike