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To: Beachside Bill who wrote (39372)	5/5/2002 7:23:56 PM
From: Beachside Bill	Respond to of 53068

PIMCO's Fed Focus - May 2002 Thought I would link to it since it talks about housing (bubble?). Interesting non the less. pimco.com I parenthesis bubble because housing has had much higher valuations in history.

To: Beachside Bill who wrote (39372)	5/6/2002 7:06:31 AM
From: Ron McKinnon	Read Replies (1) \| Respond to of 53068

Bill money continues to flow from tech and big cap to other sectors and mid caps interesting that the P/E on the mid caps (600) has now gone above the S+P 500 homebuilders continue to get investor interest and are doing fantastic no Fed intervention on rate increases forecast it continues to be of concern to those of us who are conservative that this consumer spending spree is debt financed huge increases in credit card debt, home equity loans and so called cash out refinancing I am debt adverse so understand my bias NVR is making a ton of profits not that it matters but it has simply become a piggie bank for a few insiders who now hold options worth far more than the entire net worth of the company an example of what they are doing (rough example) is in a given quarter the company makes say $100mm in profit, use that to buy back $100mm in stock, then sell the same stock to insiders via option exercise for $10mm thus all of the profits are being given to less than a dozen insiders