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To: Terrapin who wrote (59)	5/4/1998 4:52:00 PM
From: Worswick	Respond to of 278

So. John do you remember the 1970's movie "Fun with Dick and Jane." The film is about a couple who are having hard times after a market decline. They bought a house bought on speculation in the 71/72 bubble market that would never end(supposedly). The film opens. A couple sleeping in a large double bed. POull back all that is in the rooom is the bed. Tghe room is absolutely barren. As the couple lie in bed they hear a noise in the back of their house. Feature face at window: The pool guy has come in with a big truck and he is taking out their pool. They go back to bed they hear a whiring noise in front a little later. Feature face at window. The guy they bought the lawn from is rolling up the lawn and putting it in rolls like carpet on his truck and he drives away. A little later a knock at the door. FEature Dick half dressed blking in the light. Dick and Jane are told to get out of their house because it has been foreclosed by the mortgage holder. A little later Dick and Jane take to robbing banks. Moral lesson #346: Who does the mortgage holder sell the mortgage to now? Who has any money??? Threadsters Remember: "ALL DEBT MUST BE REPAID EITHER BY THE PERSON WHO LENT THE MONEY, OR THE PERSON WHO BORROWED THE MONEY...the immutable law of economics. C.V. Meyer My best,

To: Terrapin who wrote (59)	5/4/1998 6:59:00 PM
From: James Clarke	Read Replies (1) \| Respond to of 278

Another good question. I am not talking about mortgage REITs (Bonnie is) She understands them well enough to buy the safe ones, I presume, but I see these as land mines. They are highly interest rate sensitive, and depend greatly on the ability of management to reinvest. I much prefer REITS that own property that I can see, touch and value. Be careful though if you don't know real estate. There are some dogs out there with high yields, where the property is troublesome. If you read about the company and the property sounds weird, stay away. Waht you are looking for are solid office buildings, retail properties, apartments or warehouses. What I like about real estate is that you know its not going anywhere. The Dow drops 5000 points and interest rates go up, you can still go bang on the walls of your building and be pretty confident that most of the tenants will still be paying rent. That gives me much greater comfort than some virtual company. Not that you can't make money on mortgage REITs if you know what you're doing. I don't.