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To: long-gone who wrote (39677)	8/27/1999 7:47:00 AM
From: keith	Read Replies (2) \| Respond to of 116837

Interesting piece on how Barrick is playing their part in the shorting of gold theory....I'll leave it up to you experts to analyze. I'm just the messenger. www2.techstocks.com

To: long-gone who wrote (39677)	8/27/1999 9:14:00 PM
From: d:oug	Read Replies (2) \| Respond to of 116837

Richard, I was just told that a Charles Peabody was interviewed on today's CNN Money Hour 6:30-7:30 pm est. I went to that link I posted on viewing CNN transcripts, and its not availiable yet. I hope this is the same Charles Peabody that posts on Le Metropole Cafe. Charles Peabody, Mitchell Securities, August 27,99, mitchell501@bloomberg.net Greenspan Acknowledges Options as a Financial Engineering Tool Fed chairman Alan Greenspan may finally be listening to the wisdom of famed investor Warren Buffet and SEC chairman Arthur Levitt... The use of options in lieu of cash compensation has been a controversial accounting item mostly for the technology industry. However, in recent years the banking industry has increasingly resorted to using options as a compensation tool ... issuing options in lieu of cash compensation allows managements to understate reported operating expenses on the P&L statement, thereby giving the impression of better expense control as well as ultimately boosting reported EPS... ... one can start to create a mosaic that suggests this company is stretching to meet analysts' unrealistically high earnings expectations. ... cash compensation practices (versus current option issuances) would damage the earnings outlook... The following passage has been reprinted from my piece entitled "The Sage of Omaha Speaks" dated March 15, 1999. Accounting Abuses Abound The second observation is that Buffet is becoming increasingly upset with the accounting gimmickry that corporate America pursues... ... high-grade managers have come to view that it's okay to manipulate earnings to satisfy what they believe are Wall Street's desires... The SEC May Be Tilting at Wind Mills I applaud Warren Buffet's use of the bully pulpit to put the spotlight on these issues...Herculean without the support of Treasury or the Fed. ... where the process gets messy and the conflicts of interest mount. I want to emphasize what I had written on March 15, 1999. The task will clearly be Herculean without the support of the Treasury Dept. or the Fed. Is it possible that Fed chairman Alan Greenspan is actually getting serious about reining in this financial asset bubble? I don't know. But, his move to raise the discount rate as well as his commentary in Jackson Hole indicates that his frustrations with "irrational exuberance" may finally be reaching ... lepatron@lemetropolecafe.com with questions or comments lemetropolecafe.com Copyright 1999 Le Metropole Cafe