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To: Alex who wrote (27220)	1/28/1999 6:50:00 PM
From: Lalit Jain	Read Replies (1) \| Respond to of 116762

Greenspan sees some "hype" in Internet stocks WASHINGTON, Jan 28 (Reuters) - Federal Reserve Chairman Alan Greenspan said on Thursday comparisons of the stock market to a lottery had some validity, and he acknowledged ''hype'' seemed to be involved in the rush to buy Internet stocks. But in his first detailed comments on the high-tech sector of the stock market, the Fed chief told the Senate Budget Committee that the market's methods for valuing stocks may be justified, saying it was certainly possible that some of the Internet companies with highflying stock values would succeed as others might fail. ''You will get some lottery premium in the stocks,'' Greenspan said in response to a question on the Internet sector of the stock market. ''Is there some hype in this? Of course, there's some hype.'' However, he added the frenzy over high-tech stocks actually showed something positive about how Wall Street players operate: ''Mainly, that they do endeavor to ferret out better opportunities and put capital into various different types of endeavors prior to earnings actually materializing.'' Greenspan said such risk-taking was good for the financial system. ''In fact -- with all of this hype and craziness -- that is something that at the end of the day is more plus than minus,'' he said. biz.yahoo.com