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To: stockman_scott who wrote (8524)	8/1/2002 8:52:50 AM
From: Sig	Read Replies (1) \| Respond to of 13815

Morning Scott: I see the old bulls and book writers are out in force and being asked to comment on "The Bottom" When the Dow hit 7500 terror replaced worry for the really big investors in company bonds and Dow stocks. These people could always say, " how well off we are and how smart we are compared to those (stupid?)gamblers in tech stocks" What is not so obvious is that the Dow and S+P averages are being fudged by removing bad stocks and replacing them (KM, Ene, etc) have been removed and replaced with better stocks to make the averages look better. It looked so bad even both sides of Congress got in the act by almost unanimously passing new legislation and in big hurry. Because they know if "new" money from the public is not continually fed into the system then equities will collapse I have said before that if the Dow drops below 10k, the Fed will do everything in their power to keep the market up- and that there is a lot more the Feds can do besides lower the bond rates. I dont see where the Fed can (safely) put any more liquidity into the market by buying stocks. They are paying to support the Airrlines and the new Security Office. But then can and have persuaded many "experts" to come out with bullish attitudes and for Congress to inply they are "on the publics side" while their soft money still comes from businesses.. There are many failing companies built in the 1990's ( notice the 2400 "companies" created by ENE alone) that are still in existence. Thay have yet to vanish. And some investors funds are being used to pour good money after bad while banks are trying to save the small percentage left of their investments. Some companies like HPQ and Gtw are still in the PC business despite losing money competing with Dell who has half the production cost ( meaning, I believe , the labor/ facility costs) In summary: 1. IMO there was a great deal of talk in the years following 1929. Which did not help. 2. There are still far too many shares of US stocks on the market following 7,8,9, splits of Csco, Msft, Dell, Orcl, IBM (20+) etc, etc. 3. This is now a desperate struggle to hold the market together. Sig Dang, I ran out of words again