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Pastimes : I AM A MINDLESS ZOMBIE -- Ignore unavailable to you. Want to Upgrade?

To: AC Flyer who wrote (37)	8/15/2002 7:38:53 PM
From: Maurice Winn	Read Replies (1) \| Respond to of 258

ACF, his phrase, "Irrational Exuberance" was a very well-judged one as shown by the fact that it has reverberated through the years. Despite being far into his speech, it touched a nerve and was hauled out into daylight and prime time. So people had years and years of 'irrational exuberance' ringing in their ears as they bid more and more for shares with no profits and little prospect of profits and certainly not enough to justify the huge prices bid. As you say, he has slashed interest rates, so those thinking they'll just sit on cash are not going to be rewarded for it. They'll have to spend it or invest it or something because 1% is not much of a return, even if one lives to 100 - one of my arguments for reduced returns compared with historic P:Es is that people live a lot longer so it's worthwhile to invest at lower rates of return. With property rights better defended, it also makes sense to own property. Tribal life means people mustn't own something because it'll be taken away. With the dollar unbacked, it is just another business, albeit a government monopoly, running on a brand value. It can go to zero and there is no gold or anything else behind it, givining it intrinsic value, so I see no reason for shares to have a risk premium compared with dollars. Uncle Al, KBE, is one great guy. He might even be supernatural. Mqurice