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To: Perspective who wrote (271890)	12/24/2003 11:56:46 AM
From: ild	Respond to of 436258

What about words from Andy Xie: Global financial markets, especially in Asia, are simply euphoric, in my view. We are probably witnessing another equity mania. Foreign funds have flowed rapidly into Asia, especially from the US. Initial public offerings are experiencing dotcom-like surges on their first day of trading. Investors are buying because they expect others to do the same. The ‘greater fool’ game is at play again. Loose Fed policy is the cause of it all, in my view. As the Fed is reviving the US economy without structural adjustment to cure the excesses, it has to keep its monetary policy looser and for longer than usual. The spillover into emerging markets is creating bubbles around the world, which may cause excesses and lay the foundations for future problems. When the Fed has to reverse its policy, we may see financial crises again. morganstanley.com