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To: Frank Ellis Morris who wrote (55560)	7/31/1998 5:05:00 PM
From: Lee	Respond to of 176387

Frank,..Re:<< we have been seriously harmed by the Greenspan address a couple weeks ago where he said that the market was going to have a serious correction.>> If the bond market wasn't hurt by Greenspan's testimony last week, how would the stock market be hurt? economeister.com US TSY MKT SLIGHTLY SOFTER; GREENSPAN NOT SEEN MOVING MKT Even if the final judgement of Greenspan's testimony casts his comments in a neutral tone, the markets remained vulnerable to the media's "interpretations" of his comments, traders and analysts cautioned. "The media has grossly exaggerated the hawkishness of his speech," said Patrick Dimick, strategist for Union Bank of Switzerland. Dimick explained that Greenspan's hawkish comments were very conditional and phrased with a lot of "ifs" and "maybes". Now he did mention that with the spectacular earnings we've had that it would be difficult to keep this game going unless the economy kept on it's strong course. Now this sounds like what the CBS article is alluding to for the cause of the sell-off today. I guess Alan knew what he was talking about. From the CBS article. "The reasons the market is having difficulty are very simple," said David Rocker, general partner at Rocker Partners L.P. "There is massive overvaluation in the stock market, the earnings estimates are going down persistently, and the public and fund managers are already in. Only, in the CBS article, the media is again extrapolating a possible one-time decrease in GDP because of the GM strike, Inventories and exports to be a general slowing of the economy. Hard to imagine since the Chicago PMI and other indicators show that the economy is on very solid footing.