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To: ild who wrote (63805)	2/1/2001 2:00:20 AM
From: patron_anejo_por_favor	Respond to of 436258

The heart of their argument appears to be that wages and salaries are increasing faster than debt. That puts them directly at odds with none other than the ECI survey, which increased a miserly 4.1% on an annualized basis as of the 4th quarter. They also trivialize the debt load created by increased home equity lines and the overhang created (to the consumer) by shrinking home equity. Liquidity is OBVIOUSLY increasing at a record level, courtesy of BubbleBoy and the unprecedented ramp in money supply: stls.frb.org HOWEVER...it's one thing to have the cash on hand and another thing to be willing to use it to buy, say, shares of BRCD (which is why Schwab just gave half their workforce Fridays "off"). Especially if your neighbor or brother in law just got laid off. Another way of looking at this is that although ABSOLUTE levels of liquidity are increasing, liquidity relative to indebtedness levels at the personal and corporate levels remain low and decreasing.