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To: Mark Adams who wrote (231945)	3/28/2003 4:00:56 PM
From: Mike M2	Read Replies (1) \| Respond to of 436258

Mark, yes it is complex but I am a cynic and feel that much has been done to mislead the public about the true earnings power of corporations. I think FAS 87 ( pension accounting)was implemented in 1985 - not many foresaw the abnormally high rate of returns the stock market generated but few said a word once it was obvious that the impact enabled companies to " report" stronger earnings than would otherwise be the case. You don't hear much about the fact that Dell made more money operating in its own stock in the 3 years 1996-98 -(if memory serves) than selling PCs. They sold puts bought calls & stock. Obviously this was not a sustainable model for generating sustainable profits but it sure was exciting while it lasted. I do think that it is fair to say that the quality of earnings ( integrity) is perhaps the poorest in history - a rational response to overly generous stock options grants and the " maximize shareholder value" paradigm. Mike