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To: AllansAlias who wrote (77981)	7/28/2003 3:02:30 AM
From: Berney	Respond to of 209892

I readily acknowledge that the folks on this thread have taught me that FA and news means squat. Nonetheless, I'd like to report that with only 5 of the DJIA still left to report their 2nd quarter eps, the median is .42 compared to .51 for this quarter last year. The 1st quarter was .53 compared to .28 for the prior year. It would seem that the trend in eps, which one would expect would easy to expand upon, has, alas, not been so! In the final analysis ... follow the money! Frankly, it's probably not unusual for a 5th wave to be based upon non FA factors. Berney

To: AllansAlias who wrote (77981)	7/29/2003 1:48:17 PM
From: NOW	Respond to of 209892

Re Funnymentals of our economy: from Noland: "I have argued that a service sector economy is in reality a monetary economy. And, yes, as long as money and Credit are fabricated in great abundance, we do command the wherewithal to provide “services” to one another, seemingly without a hitch. We can treat each other to massage, consulting and legal services, brokerage, inflating home and security transactions, and prepare each other’s meals. There is also nothing stopping us from gleefully boasting of our “economic output” and miraculous "productivity." But, at the end of the day, there’s a balance sheet problem: there’s no getting around the reality that we are creating (inflating) financial claims with little true economic value supporting the market value of this debt. We are simply playing an illusion with imputed market values detached from true wealth creation." "Moreover, the longer the Credit Bubble is allowed to inflate, the greater the economy’s shift away from (profit constrained) manufacturing to (currently more profitable asset-inflation based) services. And the longer this inflation is fostered, the more the rising domestic cost structure impedes our global competitiveness. It is simply unbelievable that Mr. Greenspan does not appreciate these critical dynamics. Yet it does help to explain why there is little concern with our financial system’s fixation on asset and consumption-based lending, as opposed to financing business and capital investment. Apparently, the quality of financial assets matters about as much as the quality of economic “output.” Well, the nature of output is vitally important when its creation is being financed by new financial claims. And the quality of financial assets matters tremendously when they are being accumulated by foreign creditors."