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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (35230)	11/4/1998 12:53:00 PM
From: Mike M2	Read Replies (2) \| Respond to of 132070

MM, I am willing to wait and watch delaying the tough love will only make it tougher. I still maintain that an orderly decline from these levels may not be possible. I site a few brief reasons earnings are not growing and the quality of those earnings is dubious due aggressive accounting, share repurchases, options accounting, recurring non recurring charges, massive write off with future expenses buried in there. The wealth effect from a booming stk mkt is no longer present by this I mean the public has not " earned" their 20% gain to which they have become accustomed to. The debt to income ratios at or near record levels. Record high public participation in the mkts. Record valuations especially when one considers that earnings have peaked! Record low cash as a % of securities outstanding. Economic trouble throughout the world continue to spread . pressure on the U.S. at some point will result in a rapid unwinding of the yen-carry trade resulting in more hedge fund problems and higher import prices and possibly higher domestic interest rates. I don't have time to quote de figures now but the foreign central which heretofore were net buyers of U.S. debt are now NET SELLERS ( translation: start the printing presses AG and wait for tough love fer de bond mkt and de buck). The dollar bulls cite the strength of the US economy which is clearly slowing and higher interest rates which are declining ( for now) but ignore the inadequacy of our domestic savings- remember supply and Demand?- I have much more to add but I cannot type so i will dish it out in small doses. I welcome higher prices and further insanity because it will be like shooting fish in a barrel. Your comments are very amusing. ho ho ho Mike