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To: Zeev Hed who wrote (10359)	12/6/1997 1:58:00 PM
From: Bonnie Bear	Read Replies (2) \| Respond to of 18056

Zeev: interest rates have gone down but mortgage rates are virtually unchanged, the banks are pocketing the spread or charging 3 points or more for consumers to get those rates. This is part of their justification for their p/es of 20 or higher. mortgage interest rates were much cheaper in 1993.

To: Zeev Hed who wrote (10359)	12/6/1997 9:20:00 PM
From: Elllk	Read Replies (2) \| Respond to of 18056

Zeev There was reported to have been a lot of foreign buying of US stocks last week. If a significant amount of it was by the Japanese then one of your indicators of a top is kicking in. Larry

To: Zeev Hed who wrote (10359)	12/6/1997 10:20:00 PM
From: tekgk	Respond to of 18056

Zeev, You are right there are many positives - it's just that the superiority thing gets under my skin. It makes me think of Hitler, the Emperor ... it always ends in ruin for everyone involved. Many of the positives that you mention are luck - that 1.2 trillion from foreigners over the last two years were good fortune and account for many of them, although I'll admit some of them were good hard work on out part. Have a good weekend!

To: Zeev Hed who wrote (10359)	12/8/1997 2:25:00 PM
From: Mike M2	Read Replies (1) \| Respond to of 18056

Zeev, I would like to make a few points about your lists unemployment is low but the service sector jobs,in general, do not pay as well as manufacturing jobs. Debt has grown faster than incomes- this is not sustainable even if we have a new peak in national income. Low interest rates are mainly due to carry trade and Asian Central bank purchases of U. S. debt-How long can we rely on their support? The move from brain to brawn industries will leave many behind resulting in a shrinking middle class- the size of the middle class is a great source of politcal and economic stability. The reduced deficit is a temporary windfall from a powerfull bull mkt the rate of appreciation must slow and eventually turn negative EVENTUALLY( I hope in my lifetime-g-) I would imagine there are many gimmicks with this balanceing budget talk. I hear people say spending has not been reduced but i have not looked at myself(help anyone) I have a hangover from cold medicine so I'll leave it at that for now. Mike