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Technology Stocks : Jimbo's Playhouse/CPQ -- Ignore unavailable to you. Want to Upgrade?

To: Night Writer who wrote (4738)	10/18/1999 12:21:00 PM
From: Kenya AA	Read Replies (2) \| Respond to of 12663

NW: Bearish, yes, but more due to inflation worries. CPI tomorrow will be critical. BTW ... Also, Federal Reserve Chairman Alan Greenspan rattled Wall Street with a warning that investors should not under-estimate the risk of today's stock market. WRONG! He said no such thing! He did not address investors in that speech. He was advising credit risk managers at financial institutions to take inevitable periodic collapses in investor confidence into account when formulating their risk models. The uncertainties inherent in valuations of assets and the potential for abrupt changes in perceptions of those uncertainties clearly must be adjudged by risk managers at banks and other financial intermediaries. At a minimum, risk managers need to stress test the assumptions underlying their models and set aside somewhat higher contingency resources--reserves or capital--to cover the losses that will inevitably emerge from time to time when investors suffer a loss of confidence. These reserves will appear almost all the time to be a suboptimal use of capital. So do fire insurance premiums. K