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To: Victor Lazlo who wrote (122031)	3/29/2001 2:10:16 AM
From: GST	Read Replies (1) \| Respond to of 164684

"But if saving for a rainy day means living in a declining economy that indefinately lends the benefits of hard work to another country" Don't forget where the Japanese tripped -- they bought into a stock market and real estate bubble. In their bubble years they shifted their net worth from savings "on the sidelines" and moved agressively into stock and real estate equity just like we shifted into equities. Our bubble burst before real estate had a chance to go into orbit -- although some markets were no doubt getting pricey. Asset price bubbles are nasty things. We just had one and with a little common sense we are going to be ok. But there is a lesson here -- we need to develop financial balance and a more realistic perspective on valuations. Save every last cent? No way. But save some and don't put blind faith in assets "at any price" no matter what the market. When assets are overvalued, turn to more and more to cash. Don't believe you are "missing out" if you hold some cash in savings at all times. There are warning signs that our economy is too far out of balance -- warnings that are being signaled just as loudly as the bubble in stocks was signaled. And the sign says "learn how to save money -- it can come in handy and it is good for the economy".

To: Victor Lazlo who wrote (122031)	3/29/2001 2:30:23 AM
From: GST	Read Replies (2) \| Respond to of 164684

Victor: I remember being in Japan at the height of their manic period -- groups of young girls in new chaufeur-driven Mercedes would cruise Roppongi wearing fur coats -- they would sometimes roll down their windows and lean out slightly and say "why don't you come in here and join us". Spectacular asset appreciation always seems to create the same impact -- a loss of all sense of proportion, a sense of superiority, a sense that you are wealthy because you are smart and a sense that the party will never end -- it is like everybody is 18 and drunk, and nothing can hurt you ever again, there are no limits -- everybody is rich and getting richer by the minute. So they climb into cars and drive off at 100 mph -- nothing can harm them, nothing. Then it ends, a firey car wreck leaves them torn and bloody, some are are left for dead, and a somber mood settles over the society that can last for years and years. And in this morbid aftermath, nobody wants to wear fur or have group sex with rich young girls in the back of an expensive anymore -- except HJ :)