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To: Giordano Bruno who wrote (59158)	8/30/1999 8:26:00 AM
From: pater tenebrarum	Respond to of 86076

Jim, if the Fed were to embark on a course of fighting the speculation in the stock market, we'd be coming full circle. it was the Fed's decision to do just that what precipitated the '29 disaster. since AG is surely well aware of that, i wouldn't expect anything too drastic to emanate from the Fed...some half-hearted attempts to talk down the market at most. i repeat that there is no telling as to when the asset bubble will finally unwind - historic precedent (especially the late 80's Nikkei) suggests it should first inflate further, in a blow-off type rally with broad participation. i will concede however that this is by no means certain - if for some reason the panic cycle arrives early, we may not get the blow-off after all. the problem that lies at the heart of the conundrum is the market's dissociation from the fundamentals - once established, it becomes virtually impossible to determine when it will end.