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To: TobagoJack who wrote (6465)	7/31/2001 11:14:38 PM
From: Ilaine	Read Replies (1) \| Respond to of 74559

Hi Jay- >>Out where I am, we have plenty of small companies selling for 2 times earnings<< Don posted something a link to something from the Japan Times that made me think of you: japantimes.co.jp A very favorable review of the Chinese economy, written by none other than Kenichi Ohmae, author of "The Invisible Continent." I am wondering why, if the Chinese economy is so strong (and it is) the Hong Kong stock market is tanking? Can this be affecting your perceptions? >>The pool of money was poisoned by unsupportable debt in the private sector<< Grace's point is that this isn't true for all sectors of the economy.

To: TobagoJack who wrote (6465)	8/1/2001 1:55:14 AM
From: GraceZ	Read Replies (1) \| Respond to of 74559

a. Money is like water (CB thought it was like electricity), it flows, pools, rises, boils, evaporates, bursts, floods, and freezes. Humans try to dam it, guide it, use it, for good and evil; It's not fixed, there is not a given amount nor is there a fixed value that can be placed on it even. Even while it is flowing from one place to another, evaporating....it's raining somewhere else. c. Private sector’s job is to take advantage of the governments’ policies and the available pools of money to do the best for itself; The only job that a corporation has is to make profit. d. In recent times, a giant pool of money was aggregated, probably originally in the sands of Arabia, then, guided by policies, moved to Japanese stocks, real estate, USA real estate, stocks, SE Asia, Latin America, Korea, Taiwan, China, USA again; Value and stored value (money) are created by human endeavor. It's seductive to get wrapped up in watching the money shuffle game. Usually the money shuffle is what happens when a government or governments has made it less then rewarding to work for a living by creating high taxes. f. The pool of money was poisoned by unsupportable debt in the private sector; Keep watching because you are about to see the biggest write off of private debt in the history of debt. Bagholders already have their places as the equity holders before them left holding dot bombs. The great thing is that it is all secured by assets that have a shelf life close to that of a beach ball so we aren't going to have to live through another resolution trust thing where asset prices are held down for years while they try to liquidate.

To: TobagoJack who wrote (6465)	6/26/2002 11:04:14 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Jay, I stand corrected, the dollar is not electricity ... Message 16091966 ... or a pool of funding or a river of cash: <<Money is like water (CB thought it was like electricity), it flows, pools, rises, boils, evaporates, bursts, floods, and freezes. Humans try to dam it, guide it, use it, for good and evil>> It is just another asset based on a liability, with a daily mark-to-market change-of-perception based price: dailyreckoning.com <<p.s. There is a view that financial markets outside the United States are too small to absorb potential capital inflows from the United States. This view misses the point. Under a system of flexible exchange rates there are no flows of money at all from one country to another. For every dollar to be sold at a certain exchange rate there must essentially be a buyer at that rate. In the absence of buyers, the exchange rate collapses. Look out below.>> Chugs, Jay