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To: MetalTrader who wrote (65683)	5/4/2000 10:17:00 AM
From: Think4Yourself	Read Replies (2) \| Respond to of 95453

I sort of agree but, it is rare that his speeches are this easy to understand. The message is very clear, for a change, and he is not saying anything positive. It is all warnings about what needs to be done to prevent disaster, and what will happen in a disaster. It's as if he is warning them. Not trying to scare anyone. Simply noting that his speech is unusual.

To: MetalTrader who wrote (65683)	5/5/2000 11:24:00 AM
From: Terry D	Respond to of 95453

MT - Re Greenspan & structural risk - The chairman gave an interesting speech on this topic (he addressed info-tech) a month ago in DC. It can be found at : federalreserve.gov A quote - All the new financial products that have been created in recent years contribute economic value by unbundling risks and reallocating them in a highly calibrated manner... The reason, of course, is that information is critical to the evaluation of risk... ....financial intermediation facilitates diversification of risk and its redistribution among people with different attitudes toward risk. Any mechanism that shifts risk from those who choose to withdraw from it to those more willing to take it on increases investment without significantly raising the perceived degree of discomfort from risk borne by the public. BUT But while financial intermediation, through its impetus to diversification, can lower the risks of holding claims on real assets, it cannot alter the more deep-seated uncertainties inherent in the human evaluation process. There is little in our historical annals that suggests that human nature has changed much over the generations. (Who says Crazy Al is humorless?) AND During a financial crisis, risk aversion rises dramatically, and deliberate trading strategies are replaced by rising fear-induced disengagement from market activity. Soros and Robertson were ahead of the curve, they did not bother to wait for the crisis. t d