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To: SusieQ1065 who wrote (61823)	7/23/2002 5:02:02 PM
From: Jeff Jordan	Read Replies (1) \| Respond to of 208838

>>>Our biggest problem that is weighing on market today<<< not to mention constant federal reserve meddling! They are causing inflation that will appear down the road with all this printing of money. The only deflation we are seeing is the value of the buck.(and equities of course) The feds purpose is to create boom busts while it's banks exchange paper for capital goods....your property.

To: SusieQ1065 who wrote (61823)	7/23/2002 5:14:33 PM
From: Dave Gore	Respond to of 208838

Ya, politicians can definitely overdue things, but there are enough people telling them LOUDLY to proceed carefully, that hopefully they won't be knee jerk about it. Throwing criminals in jail is great, getting CEO's to sign off on balance sheets is great, but if Congress and Harvey Pitt go on a witchhunt they will hopefully be voted out of office and thrown out the door on their butt, respectfully.

To: SusieQ1065 who wrote (61823)	7/23/2002 5:28:47 PM
From: ThirdEye	Read Replies (1) \| Respond to of 208838

I don't usually pipe up here, but look, there are nine huge banks that were involved in the ENE financial shenanigans. It is completely right that their complicity be revealed, dissected and stopped. We cannot have institutions such as these playing dumb when they are playing with other people's money. The market be damned, I say clean house!

To: SusieQ1065 who wrote (61823)	7/23/2002 5:41:46 PM
From: David Lee Smith	Read Replies (1) \| Respond to of 208838

The banks are grossly over valued. CitiGroup should be an $18 stock, not a $27 stock. On the other hand the stock market as a whole is under-valued, especially the consumer group. Investors need to step up to the plate and buy stocks now to stop the wreckage. Yes there are still problems, but those potential problems are more than made up for from the low market valuation. How do you justify saying the market is under-valued? Well, just think of it as a bond that has a maturity of 100 years that pays 2% now, but that payout grows by 8% per year. In 100 years, $2 growing at 8% = $4,400 payed per year. The S&P 500 closed at 798. It pays a dividend of $16 per share. Assuming 8% dividend growth, the annual dividend income from owning one share of the S&P 500 Index at $798 would be $35,196 per year in 100 years. People forget about the value of increasing dividends over time. What is the S&P 500 worth to the long term investor given the assumption of 8% dividend growth and 3% inflation? The equation would be $16+$16(1+(.08-.03))+$16(1+0.05)*2+$16(1+0.05)*3, ... +16(1+0.05)**99. The value of the dividends alone would be worth 41,760 by the end of 100 years. Given a 3% inflation, that means the dividends alone are worth 2,173 using the present value of 41,760 at 3% for 100 years. If one uses 4% inflation, the future value of the dividend stream would be 19,802 and the present value of the dividend stream worth 1,030. Clearly the market at 798 is very under-valued!!