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To: Mike M2 who wrote (175868)	6/27/2002 12:23:14 PM
From: orkrious	Respond to of 436258

Tero Kuittinen What lies beneath 6/27/02 11:45 AM ET Well -- the Worldcom impact was pretty much declared "over" after about 24 hours. Much the same way Enron was "over" after the first couple of days. This tempting of fate is likely to lead to no good. Interestingly, it was Dow and S&P who underperformed Nasdaq yesterday -- and who yanked the markets into negative territory again today. The mantra of "sell tech and buy consumer companies" is still being recited almost daily -- long after the strategy has stopped working. Dollar did its headfake thing and is now plummeting again. Amazingly enough, all those Japan interventions yesterday did not instill any fear in currency traders -- yen has soared serenely back to 119.2. Only a month ago, the 125 level was seen as an unbreachable wall of government intervention. The violence of the dollar weakening after the Wall Street opening belies the soothing commentary on the limited impact of the Worldcom scandal. Only a day after the Worldcom debacle Motorola announces a monstrous, 3.5 billion dollar "restructuring charge" -- and incredibly enough, the company manages to spin the news media into a confusion. Most reports on the huge write-off are leading the story with "Motorola confirms earnings", even though the company did that already two weeks ago. The last Motorola charge was little more than half a billion - this ninth consecutive write-off is suddenly five times larger than the previous "one-time" write-off. This explains why the credit rating agencies have recently done ruthless downgrades of Motorola debt. They realized before the markets the heart of Motorola's gimmickry -- "break-even" is reached by quintupling the already high quarterly write-off level.