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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: goldworldnet who wrote (389960)	4/11/2003 8:18:02 AM
From: steve harris	Read Replies (1) \| Respond to of 769670

goldworldnet, I decided it would be alright to call the antiAmerican crowd "Wankers". How 'bout that? Steve

To: goldworldnet who wrote (389960)	4/12/2003 6:01:21 AM
From: DuckTapeSunroof	Respond to of 769670

Thanks very much. The crunch following bubble bursts is always serious and longer-lasting than 'regular' business cycle recessions. Popular Delusions and the Madness of Crowds is the best historical examination of bubbles I've read... and is vey entertaining as well. Fortunately, true bubbles, such as the 1920s, are relatively rare. -------------------------------------------- As to our later-day bubble disaster: Message 18832112 It wasn't just 'dot-coms' that participated in the equity runup we are calling 'the Bubble' Any company which massively watered it's stock (yet without expensing that against reported earnings... which made their P/Es appear lower than they were) through stock options grants - Microsoft, Cisco, Oracle, Sun, Disney, Lucent, Nortel, you-name-it - were 'in the Bubble' with their phony earnings pyramid schemes. That accounted for the bulk of the Nasdaq. While over on the NYSE, accounting fictions in the pension plan assumptions of 300 or so of the Fortune 500 companies which use defined benefit pension plans, artificially inflated the earnings they reported to the public as well (GM, GE, Xerox, etc.) Much of those phony earnings are yet to be backed out of those company's stock prices. (GM, for one, owes more in retiree benefits than it's entire current market value... and it's pension assets are growing far slower than the artificial number they are booking as "earnings".) No, 'the Bubble' was a hell of a lot bigger than just 'dot-coms'. The final factor was the extra trillion or so in liquidity which was injected into the markets by the Fed to ward off an expected Y2K meltdown. That put the last bit of froth on the Bubble.