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To: Bob Kimball who wrote (15123)	4/3/1998 12:45:00 AM
From: joe	Respond to of 45548

<<My big question is, where IS all this liquidity coming from? Is it margin? More VISA cards? 2nd Mortgages? It can't all be 401(K) money can it? I have this nagging suspicion that a lot of the liquidity is really debt, not savings. Just like the yen-carry trade, we may have a domestic debt-carry trade. Hey, you can make 30%/year in the market 'guaranteed' so why ever pay down those credit accounts when the money could be earning so much more???>> (IMO) liquidity is coming mostly from all the mutual funds that are looking pretty bad against the index funds. Looks to me like the retail investor (us) have outsmarted the MMs temporarily and so they are caught with a ton of cash in their pockets. That was last months last minute massive cash inflow into market. This month I think will slow some of that process down, but with DOW hitting new highs, everybody who reads the newspapers will be dying to throw money at the market, so the inflow will be higher for the moment. Then, add in 401K and the rest of your stuff above and it really adds up. Oh, plus, who wants to get interest of 5-6%? And with Asian problems, the US is a bottomless pit to hold the rest of the worlds money. As long as we don't go into recession I think this scenario will keep humming along, with a few corrections here and there (so that bears can make some money too). Joe