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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: valueminded who wrote (70323)	11/10/1999 1:19:00 PM
From: Earlie	Read Replies (4) \| Respond to of 132070

Chris: I'm with you with respect to this situation. Picture the poor guy who exits the market, parks his funds in his favourite mutual fund money market account (believing that he has reduced his risk exposure dramatically), then discovers to his chagrin that the fund is borrowing from his account to cover its redemption problems. And what happens if the fund runs out of borrowing power? Does he get a call saying, "sorry"? Incidentally, few appear to be aware of this tiny little "fine print" item. Best, WEarlie

To: valueminded who wrote (70323)	11/10/1999 1:27:00 PM
From: Mike M2	Respond to of 132070

Chris, ultimately this pyramid rests on CONfidence it has been a mugs game to try to call the end but all credit induced bubbles have burst in the past and will in the future. It is not enough to maintain the credit expansion it must expand at an ever increasing rate. Something to consider :If the auto industry's market valuation doubles in value in 6 months yet its production capabilities and efficiencies have only increased marginally is society ( other than shareholders) any better off? Today's economists have become cheerleaders for the bull market and have lost sight of the concept the inflation of financial assets does not produce wealth. mike