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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Worswick who wrote (750)	1/19/1999 1:37:00 PM
From: Robert Douglas	Read Replies (1) \| Respond to of 2794

Fleckenstein said: I guess that's what the bulls have in mind for what happens next, because certainly economic fundamentals have zero to do with anything these days. While I have no dispute with the conclusion that the market is high and the Internet mania is a bubble, the notion that the “economic fundamentals have zero to do with anything”, is as far from the truth as you can get. [Forgive my use of that now-corrupted word truth, I use it in its pre-Clinton, traditional meaning] Economic fundamentals have everything to do with it. From a strictly U.S. viewpoint, the Asian recession came at the perfect time. If it weren't for the export-induced weakening in U.S. manufacturing, we would surely have had an overheating in 1998 followed by inflation and higher interest rates. Has everyone forgotten that despite Asia, the U.S. economy grew almost 4% in 1998? So yes, for financial markets, Asia was good news. Why is this so puzzling to Fleckenstein? The ridiculous conclusion then, that additional problems in other parts of the world will be received with the same euphoria is preposterous and, IMO, shows great ignorance. He rants at the absurdity of a situation that is perfectly logical. I would look elsewhere for inspiration, if I were you. -Robert