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To: carranza2 who wrote (15219)	2/19/2002 2:14:27 PM
From: Raymond Duray	Read Replies (1) \| Respond to of 74559

carranza2, You misunderstood my comments about shorting within 401(k)s. I was certainly not advocating such a risky strategy, and I don't see how you inferred that. I was merely stating to David that there is a lot of money that gets thrown at the equities markets, and that maybe we need to re-examine whether or not this skews equity prices with a bias to inflate their value and prop up P/E ratios in an uneconomic fashion. Just an observation on the laws of supply and demand, and the creation of inflated prices in the equity sector. BTW, thanks a lot for taking the time to comment. Your views, as an administrator, are certainly more accurate than mine in the detail, though I'm not dissuaded that my overview is still correct. -Ray

To: carranza2 who wrote (15219)	2/22/2002 4:34:00 PM
From: Raymond Duray	Respond to of 74559

401(k)s as Financial Market Profit Centers carranza2, Persuant to our discussion of defined contribution plans, here's a view you may or may not agree with: villagevoice.com <Snip> Brokers Get Rich. The Rich Get Tax Breaks. And the Little Guy Gets No Pension. What’s Wrong With 401(k)'s? The Enron scandal may be the biggest corporate scam in American history, but it's only the tip of the iceberg of a huge corner of the U.S. economy—the pension business. Today pension plans hold nearly $8 trillion of U.S. capital. Half of that amount is taken up by traditional plans in which companies pay workers a set amount from the time of retirement until they die. These accounts are more or less insured by the U.S. government, should a company fail. Another $2 trillion is accounted for by people working in the public sector, and the remaining $2 trillion by the faddish 401(k)'s, which are uninsured and float up or down with the stock market.