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To: accountclosed who wrote (45157)	6/4/1999 5:17:00 PM
From: BGR	Read Replies (1) \| Respond to of 86076

Antoine, I agree with you that risk premiums have fallen dramatically from past measures. I subscribe to the view that the market is smarter than you and me, hence I am going to accept that the risk premium as determined by the market is accurate. Also, I do agree that the future doesn't look rosy throughout the world and there is a genuine risk of deflation which the Fed as well as other Central banks are trying to avoid by increasing liquidity (the classic Milton Freidman solution). What if Asia and Europe bounce back too much as a result of that? Well, we are on our way from an inverted yield curve to one with some steepness. The patient is out of ER, but the time to yank the oxygen mask is perhaps still in the future. Given the excellent record of the present Fed (I am particularly impressed by last October!) I remain optimistic. But then, I am probably optimistic by nature. -BGR.