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To: Muthusamy SELVARAJU who wrote (22265)	8/6/2002 11:19:09 PM
From: Raymond Duray	Respond to of 74559

Hi Selva, I have long contended that Greenspan's indulgence of his owner's irresponsible casino operations in derivatives will be the ruination of his reputation. They came close in '98 with the LTCM meltdown. But I have a sense of impending doom when I read about the vast exposures that the likes of JPM-Chase and Citibank have. As with "portfolio insurance" in 1987, the market moves as a herd, and if too many banks are all hedged on the wrong side of a trade in the event of a crisis, they could take the whole financial system down. Not a pretty thought. And the guys who are running this racket, like Peter Purcell, CEO of Morgan-Stanley, have recently been down in Washington lobbying Congress to try to get new laws passed so that the bankers are totally absolved of all infractions of state fraud laws, similar to the recent action against Merrill/Lynch by NY AG Eliot Spitzer. These bankers are an incredibly arrogant lot who see themselves above the law. Unfortunately, they aren't beyond the laws of mathematics and risk. And their behavior is getting downright irresponsible. -Ray