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To: pater tenebrarum who wrote (124434)	9/21/2001 6:39:53 AM
From: Earlie	Read Replies (2) \| Respond to of 436258

Heinz: My perspective precisely. The spiral has now acquired enough mass and momentum that throwing further "debt availability" at it just isn't going to stop its murderous progress. With respect to a rally, like you, my gang is more or less now on the sidelines and starting to pick up very small positions in a few stocks that I think "will do well in bad times". Obviously more gold stocks, and an MB "first third" of a small medical device company that I think will do well in the near term. We have also increased ownership of our "sewer rat" (I expect infrastructure stocks to benefit from the coming melt) and we are also exploring garbage handling and incineration situations (more later on this). Most of the recognized "defensive stocks" are already expensive, so it makes more sense to dig among the juniors that address the above-noted arenas. From a strategic point of view, I have suggested to our group that we wait until the next rally gets underway before we add a "second third" (to benefit from the lift)and peel off significant percentages of these positions as the rally peters out. Obviously we will return to the short side as well, at that point. Right now, being short at this juncture provides a poor risk/reward ratio for me. If I miss a "waterfall event" as a result of my caution, then so be it. The staggering amounts of liquidity added to the scene in recent weeks have me spooked and I am loath to give back any of this year's delightful short-based gains. Best, Earlie