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To: Robert Rose who wrote (70572)	7/29/1999 1:52:00 PM
From: GST	Read Replies (2) \| Respond to of 164684

Robert -- this is the 64,000 dollar question. Last year with LTCM there were 400 hedge funds counted as such by the fed -- not all large of course. LTCM had, from my foggy memory, invested capital of what $4 billion? They borrowed another $90 billion from banks and such? And then they used this pool to establish derrivative positions of $1 trillion? We are an international economy with no net savings and a $300 billion dollar trade deficit. Investment flows are the lynch pin that have been used to balance our books -- the peaking of the dollar says 'its over' -- and so is the highly leveraged liquidity. I forget the global size of the derrivative market -- can anybody help me here? $50 trillion rings a bell. But I wouldn't worry, cause the day traders will step up to the plate and buy the dips -- this will offset these flows for sure <VBG> No I don't know how leveraged foreign money is: but the stock portion is more likely than average to be high rollers playing hedge funds with leverage.