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To: Nadine Carroll who wrote (91551)	4/8/2001 4:02:02 PM
From: Mike M2	Read Replies (1) \| Respond to of 436258

Nadine, the trouble with credit bubbles is that they lead to malinvestment and overinvestment - internet dot.con and semiconductors & telecommunications. What is especially troubling with the current credit excesses is that a substantial portion of the credit excesses were used for unproductive uses - consumption and financial engineering. Rising stock prices do not create wealth ( productive capital stock of a nation) but simply inflate the claims on existing wealth - stock repurchases, M & A. mike

To: Nadine Carroll who wrote (91551)	4/8/2001 7:21:58 PM
From: limtex	Read Replies (1) \| Respond to of 436258

Nadine - the sad facts are that Naz 500 is much nearer than Naz 5000! With the Fed maintaining interest rates at 5%, which might have been sustainable in 1999, in the face of a massive economic slowdown it is the equivalent of having the brakes full on. Why would they do this? Who knows. The selling has been going on almost continuously for over a year and is showing no signs that I can see of slowing down indeed just the opposite. This week is the beginning of earnings season. What can we expect........? Take a look at this for semis- redherring.com Mr Bush may have a bit of a problem in 2004 if this continues. Best regards, L