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To: Tom Byron who wrote (40280)	9/14/1999 12:14:00 PM
From: long-gone	Read Replies (1) \| Respond to of 116757

Princeton fallout: Tuesday September 14, 4:14 am Eastern Time Nidec says holds 2 bln yen of Princeton notes TOKYO, Sept 14 (Reuters) - A Japanese specialised maker of precision motors, Nidec Corp , said on Tuesday it holds two billion yen worth of notes issued by Princeton Economics International which could hurt its earnings in the year to next March. The U.S. investment firm is being investigated over a scheme that U.S. prosecutors say may have cheated Japanese investors out of $1 billion.(cont) biz.yahoo.com Tuesday September 14, 3:51 am Eastern Time Gun-Ei Chem to incur Y11.79 bln H1 special loss TOKYO, Sept 14 (Reuters) - Gun-Ei Chemical Industry Co Ltd said on Tuesday it would incur an extraordinary loss of 11.79 billion yen in the six months to September as a result of Princeton notes it holds to that value. The issuer of the notes, U.S. investment firm Princeton Economics International, is being investigated over a scheme that may have cheated Japanese investors out of $1 billion.(cont) biz.yahoo.com Monday September 13, 11:57 pm Eastern Time Amada Washino, Kissei hold Princeton notes TOKYO, Sept 14 (Reuters) - Japanese machine tool maker Amada Wasino Co Ltd said on Tuesday it holds three billion yen of notes issued by U.S. investment firm Princeton Economics International, which is being investigated over a scheme that may have cheated Japanese investors out of $1 billion. Amada Wasino said its earnings results for the year to next March may be hurt, though it said it would be some time before it could disclose the exact impact. Amada Wasino is owned 18.1 percent by Amada Co Ltd , which on Monday said it held six billion yen of Princeton notes.(cont) biz.yahoo.com

To: Tom Byron who wrote (40280)	9/14/1999 3:44:00 PM
From: Alex	Read Replies (1) \| Respond to of 116757

Overvalued Wall Street is set for a 5500 points crash' One of the City's top economists has predicted a Wall Street slide of dire proportions, implying that US share prices are heading for a fall of between one third and one half, writes Patrick Hosking. Professor Tim Congdon of the City investment finance house Gerrard Group argues that Wall Street is massively overvalued using any of five different measuring tools and is heading for a big fall. His analysis would translate into an unprecedented decline of between 3500 and 5500 points in the Dow Jones Industrial Average, which stands at just over 11,000. By comparison US shares fell 30% in the crash of 1987. But Congdon, who was one of the 'six wise economists' who advised Conservative chancellors in the early 1990s, stressed he did not know when the fall might come. 'Whether it's in six months or two years or five years is impossible to say.' London was also overvalued, he said, but not by as much. US share prices were 'stratospherically expensive' measured by price-earnings ratios, dividend yields or yield ratios, a measure of how their return compares with government bonds, he said. Each of these measures implied the need for a fall of 50% or more in share values for Wall Street to return to 'normal levels'. Even using more-sophisticated measures, the inflation-adjusted ratio of bond yields to earnings yields for example, shares still needed to fall by 30%-40% to achieve historically average valuation levels, he said. Congdon's warning echoes growing concern that the Wall Street bubble could burst. Bank of England governor Eddie George said yesterday there was 'concern' among central bankers that share markets were extremely strong 'and there could be an abrupt adjustment'. The International Monetary Fund said last week the odds on a significant correction had shortened since last year and warned that a fall could drag down the US economy and other stock markets. Sushil Wadhwani, the newest member of the Bank of England's monetary policy committee, also expressed worries about Wall Street. 'We are approaching last-chance saloon. There is above-average risk associated with owning US equities,' he said. Other economists are also concerned. The team at HSBC is forecasting 'a correction of at least 20% over the next six to nine months' - possibly triggered by a further tightening in US interest rates. However, some economists say the bull market can go on. Abby Joseph Cohen, the celebrated Goldman Sachs equity strategist, this month raised her estimates for US corporate earnings, saying earnings would keep rising at or near their longer term average of 7% for some years to come. ¸ Associated Newspapers Ltd., 14 September 1999 thisislondon.co.uk