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To: Joseph G. who wrote (9792)	10/29/1998 1:28:00 PM
From: Cynic 2005	Read Replies (1) \| Respond to of 86076

Spin doctors from the PPT at work: Thursday October 29, 12:51 pm Eastern Time (Note: this article is ''in progress''; there will likely be an update soon.) Financial markets are calming down-Fed's Kelley HOUSTON, Oct 29 (Reuters) - Federal Reserve Governor Edward Kelley said on Thursday financial markets appeared to have become less volatile lately, a development welcomed by the U.S. central bank. ''I hope that the financial markets are in the process of calming down,'' Kelley told a year 2000 banking symposium in Houston, Texas. ''I think we've had less volatility in the last few sessions and that's a good sign...it's a little too early to say it's all over.'' Reviewing liquidity conditions in the economy, the Fed governor noted that a recent credit crunch caused by an international financial crisis seemed to be easing. ''That idea of a credit crunch has cropped up in some cases and some places and I'm not concerned about that,'' he said. ''It is true that the capital markets with all of the volatility of the last couple of months have gotten very tight and credit flow through those channels has been very difficult, but the banking system has been picking up the slack.'' ---- Volatility is defined (by the Feds, Bulls and the US Congress) as intense downward pressure on prices. In other words, a 10% move up in 2 days is OK but a 10% down move in 2 weeks is considered volatile!

To: Joseph G. who wrote (9792)	10/29/1998 2:21:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 86076

I may be misunderstanding the limited information I can glean from the AMG site, but it sounds as if they use information collected from about 53% of equity mutual funds and extrapolate it to get an estimate of the inflow/outflow for all the equity funds. I have not been religiously writing down every week's AMG estimate and then checking a couple of months later to see how close it came to a more reliable calculation. But it's true that I certainly don't recall the August figures as indicating anything like the total outflow that actually seems to have occurred. I guess I could check my own messages--I may have been posting these.

To: Joseph G. who wrote (9792)	10/29/1998 2:36:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 86076

This is still not very accurate, but scanning earlier SI posts that mention AMG it lookas as if those reports indicated a pretty flat August--some inflows, some outflows, when in fact according to the Mutual Fund Institute the net outflows were much larger in August. It appears there is no way of getting reliable short-term information on where and how much money is moving in and out of mutual funds. Even the percentage of cash held by funds does not seem to be reported consistently everywhere. MarketGauge keeps insisting it's below 5%, but the site you gave shows over 6%.