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To: John F. Dowd who wrote (98046)	2/2/2000 12:18:00 PM
From: Joseph Pareti	Read Replies (1) \| Respond to of 186894

>provides high stock prices which allows companies if >necessary to issue new stock and raise capital without the >burden of debt thus taking the pressure off debt markets. what's the difference between : - junk-bonds-based LBO's - AOL takeover of TimeWarner and - the Ponzi scheme Hopefully AG will bring about some sanity.

To: John F. Dowd who wrote (98046)	2/2/2000 12:19:00 PM
From: Tony Viola	Respond to of 186894

John, Re: I hope you and the rest of the world will realize that the stock market going up not only provides a wealth effect but provides high stock prices which allows companies if necessary to issue new stock and raise capital without the burden of debt thus taking the pressure off debt markets. By this companies can add additional capacity at a lower cost of money and thereby produce more widgets at a cheaper cost. More widgets being chased by a congruently growing dollar supply yields no inflation. Companies can also use their stock to buy other companies who are at lower PE's (less efficient) and hence make the purchased assets more efficient. Good post. Tell Greenspan! Tony