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To: Ken98 who wrote (51286)	8/27/2002 10:05:59 AM
From: Berney	Respond to of 209892

Ken, the "as reported" earnings include the staggering write-off of goodwill as mandated by FASB, including $54B written off by AOL. Using that number is just as ludicrous as folks valuing companies at the height of the bull based on "page views." Slinowski had a great chart a week or so ago that showed that the final leg of the '29-'32 bear happened when the fed raised rates (as I remember 3 times). I actually believe that earnings are dramatically improving in the 73 Big Boyz that I follow, and, further, it is this improvement that eventually, probably in the spring of next year, will cause the fed to raise rates. This bear is not over by any means; however, the next leg down will be in an environment of improving earnings. IMHO this is why the fed model shows such a dramatic under-valuation at this time. Just a View from the Swamp, Berney