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To: goldsnow who wrote (10005)	4/15/1998 10:20:00 PM
From: Eashoa' M'sheekha	Respond to of 116762

Thank You GoldSnow. This is the outfit he works for.Name at the bottom to the right.... chase.com Good post Thanks Again

To: goldsnow who wrote (10005)	4/15/1998 11:07:00 PM
From: Alex	Respond to of 116762

Nice post goldsnow. May could be an interesting month...................... Wednesday April 15, 10:37 pm Eastern Time G7 turns wary eye to soaring share markets By Scott Miller WASHINGTON, April 15 (Reuters) - Group of Seven (G7) economic policy makers turned a wary eye to soaring U.S. and European share markets on Wednesday, some saying sky-high markets need to be closely watched by authorities. G7 finance ministers and central bank governors, meeting on the sidelines of the International Monetary Fund's spring gathering, could not agree how serious risks posed by high share prices were, but made no secret of their growing interest in what has become a boom for global investors. Some such as Bundesbank President Hans Tietmeyer spoke of the serious consequences of a possible sharp share market correction while others including French Finance Minister Dominique Strauss-Kahn said there was no reason for worry yet. U.S. Treasury Secretary Robert Rubin said the G7 discussion was mostly an exchange of ''analytic thinking'' and that no conclusions were reached. ''There was some discussion, not just in the United States, but in a broader sense, about the impact of wealth effects of a stronger market on consumption and therefore on economic activity,'' he said. Driven by low inflation and healthy corporate earnings, share markets in the U.S. and Europe climbed steadily this year with the U.S. industrial average setting a record again on Wednesday at 9,162.27, adding to what has been more than a 15 percent gain so far this year. European exchanges have followed the Dow's record run with Germany's 30 share DAX index climbing through the 5,400 level for the first time on Tuesday while French market has surged 130 percent the last 29 months. Tietmeyer, president of Germany's conservative Bundesbank, expressed some of the strongest concern, referring to the impact of a possible sharp decline. ''If there is a setback, it could cause substantial problems,'' Tietmeyer said. ''It is something that has to be closely watched,'' he said adding that share market excesses were more of a problem for English-speaking nations than for his own country. Italy's Treasury Minister Carlo Azeglio Ciampi echoed Tietmeyer's comments saying, ''This enthusiasm, or exuberance, in some cases is almost irrational.'' The major worry for policy makers is that a steep dive in share prices could whip away billions of dollars worth of wealth, possibly hurting consumer spending and confidence in the economic system. Indeed, officials here needed to look no further than across the meeting table to see what a weak stock market can do to an economy. The Japanese Nikkei index soared through much of the 1980s, but in the 1990s has fallen to half its one-time highs, adding to the nation's economic woes. But not all G7 policy makers meeting here said there was reason for worry about share levels. France's Strauss-Kahn said: ''We must take care that stock market rises remain in line with other economic elements. But no worries about equity prices were expressed at the meeting.'' Central bank chiefs are often leery of sharp stock market gains because they reduce their ability to control the economy through monetary policy. Higher stock prices create wealth in an economy beyond the control of policy-makers who try to manage growth by limiting the supply of money in the economy. On Monday, IMF chief economist Michael Mussa kicked off the latest round of debate about the economic consequences of sky higher share prices, telling a news conference that a stock market decline was a risk that should warrant ''concern at this point in time.'' But he added that a decline now would not be a major problem.