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To: tekgk who wrote (10698)	4/26/1998 2:46:00 PM
From: Terry Rose	Respond to of 116796

tekgk, Mutual funds claim to have 2-4% cash for redemptions which is a dangerously low amount for any kind of meaningful correction. The reality is they have no cash and they fail to mention the billions of dollars they have borrowed from the banks using investor's stocks as security. The mutual funds also do not disclose the status of their vast amount of derivatives that they currently hold. With 8000 mutual funds, I find it very curious that none have to my knowledge gone out of business. Since derivatives are zero-sum (for every winner there is a loser), at least one of the players should have been eliminated by now considering all the fallout from the Asia crisis. Terry,