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To: Lee who wrote (52848)	9/16/1998 2:28:00 PM
From: Trey McAtee	Respond to of 58727

lee-- i'll be honest...i think it is time we pull back a bit. overextending now could cause an even larger crash down the road. a more reasonable valuation, given the fundamentals, is in the mid 6 range. at that level you can really justify things. lowering US rates is not going to help that much. you have to understand that a decrease in rates at this point would tie up massive amounts of liquidity in equities, where they do not need to be. it is better to wait until we have no choice, and the money will be used for things other than market speculation. have any doubts? one of the things fueling THIS rally is the fed adding liquidity to the system,IMHO. if we dont take the bull by the horns on this now, then we will be setting ourselves up for a japanese style fall. if that happens, you can take rates to zero and it wont make a difference. one of the things we are telling japan is to clear out the dead wood. this is the same thing we should be doing...tightening the ship instead of spending more on a new paint job<G>. good luck to all, trey