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To: limtex who wrote (113586)	2/18/2002 10:18:55 AM
From: T L Comiskey	Read Replies (1) \| Respond to of 152472

L...On options and their true Fall OUT Comments appreciated...... borrowed from Zeev's T To:PETE from STAMFORD, CT who wrote (30655) From: martin knight Sunday, Feb 17, 2002 11:17 PM Respond to of 30725 The reason I think that the true cost of options is hard to calculate is that dilution is thought of as a one time event rather than the ongoing process that a substitute for compensation must be. For example a company that dilutes its stock by 2% a year will with compounding have 80% more shares after 30 years. In other words a slice of the company now will only be 55% as large at that time. Or consider the extreme example of a company that pays all of its expenses with options so that all its revenue goes to the bottom line even if its only the interest on its cash balance. Is this really a profitable company in any meaningful way? It?s this ability to mask the true cost to shareholders that makes them so attractive to management - truly a free lunch.

To: limtex who wrote (113586)	2/18/2002 7:34:15 PM
From: marginmike	Respond to of 152472

already is. just noone wants to admit it.

To: limtex who wrote (113586)	2/18/2002 7:47:14 PM
From: Keith Feral	Read Replies (1) \| Respond to of 152472

Everyone has been talking about the problems in Japan for 10 years. What needs to happen in Japan is a significant rise in interest rates to reflect the higher risk of government debt. You can't float $10 trillion in debt with 0.5% interest rates. If the Japanese were to start increasing interest rates, that would make the yen more attractive to domestic and international investors alike once the change is made. However, the currency market might re-act in the exact opposite way in the short term as a series of interest rate adjustments is made. This might give traders a chance to stage a coup against the yen. There have been some suggestions that the Japanese government is ready to step in and back the banks once they complete a full audit of the banking system. The whole situation reminds me of the banking crisis in the US in the late 1980's. Everything sucks in the short term, bound to get better once the press dies down.