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To: THE ANT who wrote (94342)	9/25/2010 2:13:43 PM
From: John Vosilla	Read Replies (2) \| Respond to of 118717

Well capital will flow to where it is productive and generates a real return. Overvalued assets where there isn't enough cash flow to meet debt service and also amortize debt are at great risk. We are back to much closer to a norm than we were 3-6 years ago. Actually we more than overshot to the downside already in Florida. Other places RE is still very expensive but in the states those are the exception rather than the rule today. Tech stocks were very expensive 10 years ago not so today yet quality stable high cash flow companies like Philip Morris were much cheaper 10 years ago. The dynamic now is not much different now than 10 -15-20 years ago overall. The percentage of corporate profits derived from financial engineering has dropped substantially from the bubble years. Most concern to me is the politics are ugly and the 350% debt/GDP would turn into a disaster on very possible level if interest rates were to rise substantially and we don't start having decent growth rates in coming years..