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To: Frank Ellis Morris who wrote (86144)	7/26/1999 5:39:00 PM
From: Diamond Jim	Respond to of 186894

Thanks Frank, I laughed my a** off. You are serious though so it's a shame you are so upset at Greenspan. Did you know that Bob Brinker thinks Greenspan should get the Nobel Prize in Economics? The Dow is up nearly 400% during this bull market run thanks to Greenspan but I do realize what you are saying.

To: Frank Ellis Morris who wrote (86144)	7/26/1999 7:02:00 PM
From: Harry Landsiedel	Respond to of 186894

Frank. Re: "I want Greenspan to shut up and stop manipulating the financial markets with his damn threats." Maybe Greenspan is looking at numbers like these from GV Tucker: "The average estimate for the 5 year EPS growth rate of the S&P is 7%, according to Zack's. The average estimate for earnings for 1999 is $48.38. As I write this, the S&P is at 1398, which would translate to a PE of 28.8, and a PE/growth of 4.13x. If you use Dec 2000 earnings of $51.13 (and in reality, no one has any idea what earnings will be next year) that decreases the PE/g to 3.9x." When you have a PE/Growth rate of 3X to 4X, you are looking at some overvalued stocks. That makes Greenspan nervous. OTOH, I understand your point about not talking about equity prices. That's not his job. But he is sincere in his concern about inflation, and when he uses words like premptively it scares the market 'cause that says interest rates will go up even if inflation is not evident. My suggestion: Don't fight the Fed. Buy the long bond if it goes over 6.1%. If inflation stays calm, you should make some money within a year. Otherwise, hold on tight. It could be a roller coaster ride for awhile. Also, remember Greenspan wants to get renominated to another term. If the market/economy tank, Clinton won't renominate him, 'cause he wants Gore to win in 2000. HL

To: Frank Ellis Morris who wrote (86144)	7/26/1999 8:03:00 PM
From: royco	Respond to of 186894

Frank Re: Greenspan Don't worry Frank. Someone posted that Bob Brinker thinks Allen deserves the Nobel prize. Forget the fact that it's finally being ackowledged that there has not been real inflation for years, that tehnology/productivity gains have been so dramatic that maybe, JUST MAYBE, things have changed, along with the freeing up of markets around the world for the last decade, that the FED has been given credit for this irrationally exuberant stock market since '97, while some political changes may have affected a reduction in deficits just a tad, even while the spenders in D.C. would love to keep at the trough; that interest rates in relation to inflation are historically HIGH; Don't worry, Alan G. is infallible, he deserves the Nobel prize, Bob Brinker says so. <GG> Maybe you're getting too emotional, but your anger is understood by this long-term investor. And the next bottoming out/base will surely give rise to future gains in the next 12-16 months for the solid companies that increase the bottom line for their owners! Off to watch some baseball. Regards, Royco

To: Frank Ellis Morris who wrote (86144)	7/26/1999 8:23:00 PM
From: John F. Dowd	Read Replies (1) \| Respond to of 186894

Frank: Here is another example of the unintended consequence of Alan the Clowns ramblings before Congress: WASHINGTON (CBS.MW) -- Fears of rising mortgage rates pushed buyers off the fence in June, boosting sales of existing homes 10.6 percent to a record 5.53 million annual rate, the National Association of Realtors said Monday. Sales rose in all regions of the country. May's sales were revised slightly lower to a 5 million pace from 5.04 million. The previous record of 5.42 million was set in March. "When buyers saw interest rates moving up this spring, they jumped off the fence and into the market to take advantage of excellent affordability conditions before mortgage rates moved higher," said Sharon Millett, president of the industry trade group. What does this do for inflation - right it makes it worse as lumber prices are forced higher for the next month or 2 and then Ag says hey look at that inflation in the building industry. Then he'll say and look at that the cost of money is going up. Save us from the meddlesom DC bureaucrats please. JFD