7/18/02

LC020718

VAL ZAVALA>> ON LIFE AND TIMES TONIGHT --

JESS MARLOW>> PUT AWAY YOUR PICKET FENCES. YOU'RE ABOUT TO MEET SOME URBAN PIONEERS WHO THRIVE WHERE OTHERS FEAR TO TREAD.

GAY YEE>> WHAT DOES IT TAKE TO LIVE DOWN HERE? WHAT TYPE OF PERSONALITY?

JASON 71>> ADAPTABILITY. YOU HAVE TO BE ABLE TO ADAPT TO YOUR SURROUNDINGS AND BE A SWISS ARMY KNIFE TO WHATEVER COMES YOUR WAY.

VAL>> IF THE MARKET IS RIGGED, SHOULD YOU GET OUT? AND IF YOU'VE ALREADY BAILED, SHOULD YOU GET BACK IN? FINANCIAL REPORTER, BENJAMIN COLE, IS HERE TONIGHT AND HE'LL BE TAKING YOUR CALLS ON 401(K)S, STOCKS AND MUTUAL FUNDS, AND HOW TO SURVIVE THE WALL STREET MELTDOWN.

JESS>> PATT MORRISON HAS HER SIGHTS FIXED ON A NEW TARGET: JUNK FOOD.

PATT MORRISON>> YOU WANT TO KNOW WHAT'S IN THIS BAG? BETRAYAL. THAT'S WHAT'S IN THIS BAG -- ON TONIGHT'S INFINITELY MORRISON.

VAL>> PLUS, LOOKING FOR LOVE AND COMPANIONSHIP ON THE INTERNET?

HAROLD FICK>> TWO WEEKS AGO, I CAME TO HO CHI MINH TO MEET THE WOMAN I FELL IN LOVE WITH.

VAL>> YOU WILL MEET A CALIFORNIA MAN WHO FOUND BOTH IN VIETNAM. THE JOURNEY STARTED HERE ONLINE, BUT IS THIS ANY WAY TO FIND A BRIDE AND CAN THIS LOVE STORY TRULY HAVE A HAPPY ENDING?

JESS>> THESE STORIES COMING UP NEXT ON LIFE AND TIMES.

LIFE AND TIMES TONIGHT IS MADE POSSIBLE BY THE FOLLOWING FOUNDATIONS:

THE L.K. WHITTIER FOUNDATION
DEDICATED TO IMPROVING THE QUALITY OF LIFE BY SUPPORTING INNOVATIVE ENDEAVORS IN THE FIELDS OF MEDICINE, HEALTH, SCIENCE AND EDUCATION.

AND THE CALIFORNIA ENDOWMENT
THE STATE'S LARGEST HEALTH FOUNDATION SUPPORTING ORGANIZATIONS THAT DIRECTLY IMPROVE THE HEALTH AND WELL-BEING OF CALIFORNIA'S DIVERSE COMMUNITIES. THE CALIFORNIA ENDOWMENT, A PARTNER FOR HEALTHIER COMMUNITIES.

VAL>> GOOD EVENING, I'M VAL ZAVALA.

JESS>> AND I'M JESS MARLOW.

A BIT LATER IN TONIGHT'S BROADCAST, WE'LL GIVE YOU A CHANCE TO TALK WITH AN EXPERT ON WALL STREET. BENJAMIN COLE, A REPORTER WITH THE LOS ANGELES BUSINESS JOURNAL, IS HERE TO ANSWER YOUR QUESTIONS ABOUT SURVIVING THE RECENT TURMOIL IN THE STOCK MARKET, SO JOT DOWN THE NUMBER ON YOUR SCREEN AND WE'LL GET TO THAT IN JUST A FEW MINUTES.

VAL>> BUT FIRST A LOOK AT L.A.'S NEW URBAN PIONEERS. THEY'VE TRADED MANY OF THE CREATURE COMFORTS AND CONVENIENCES OF SUBURBAN LIFE FOR A CHANCE TO LIVE IN DOWNTOWN LOS ANGELES. BUT WHAT'S THE ATTRACTION? TONIGHT GAY YEE TRIES TO FIND OUT.

JASON 71>> HELLO. WELCOME. MY NAME IS JASON 71. I LIVE IN A LOFT HERE DOWNTOWN.

GAY YEE>> HE GOES BY THE NAME OF JASON 71. HE'S ONE OF HUNDREDS OF URBAN PIONEERS BLAZING A TRAIL BACK INTO L.A.'S DOWNTOWN CORE.

JASON 71>> THIS IS THE KITCHEN AREA...

GAY YEE>> JASON LIVES IN THE HELMAN BUILDING IN THE HISTORIC BANK DISTRICT. HIS TRENDY 800-SQUARE-FOOT LOFT AT FOURTH AND MAIN WAS ONCE A BLIGHTED OFFICE BUILDING. JASON SAYS HE'S TAILOR-MADE FOR DOWNTOWN LIVING. HE'S A SELF-EMPLOYED MUSICIAN, ARTIST, PHOTOGRAPHER AND GRAPHICS DESIGNER. HE WORKS OUT OF HIS HOME AND RARELY, IF EVER, NEEDS A CAR.

GAY YEE>> HOW ANTI-L.A.

JASON 71>> EXACTLY (LAUGHTER)

GAY YEE>> JASON SAYS, LIKE HIMSELF, MOST OF HIS NEIGHBORS CAME HERE IN SEARCH OF THE KIND OF BIG CITY LIVING FOUND IN NEW YORK OR CHICAGO, BUT THERE ARE UP SIDES AND DOWN SIDES.

JASON 71>> HELLO, HELLO.

GAY YEE>> JASON CATCHES A GLIMPSE OF BOTH EVERY TIME HE STEPS OUTSIDE HIS DOOR TO THE LOCAL COFFEE SHOP ACROSS THE STREET. SIPPING HIS COFFEE AND DIET COKE AT A TABLE OUTSIDE, YOU CAN SEE WHAT JASON IS TALKING ABOUT JUST OVER HIS SHOULDER.

JASON 71>> DOWN ON THAT STREET, DOWN ON THAT CORNER, IT'S A LITTLE BIT ROUGHER, DRUG DEALS AND STUFF LIKE THAT, BUT IT IS CLEANING UP.

GAY YEE>> BUT YOU SEE THEM ALL THE TIME?

JASON 71>> YEAH.

GAY YEE>> THERE'S ALSO A HOMELESS SHELTER JUST DOWN THE STREET.

JASON 71>> YOU KNOW, A LOT OF THE INDIGENOUS PEOPLE ARE, YOU KNOW, A LITTLE BIT CUCKOO, SO IT MAKES FOR AN INTERESTING TIME.

GAY YEE>> DURING THE 1920'S AND 1930'S, DOWNTOWN WAS WHERE L.A. CAME TO WORK AND TO PLAY. THE CITY'S GREATEST COLLECTION OF ARCHITECTURE CAN STILL BE FOUND HERE FROM THE WORLD-FAMOUS BRICK AND IRON BRADBURY BUILDING TO THE LEGENDARY MOVIE PALACES ON BROADWAY. BUT OVER THE YEARS, THE NEIGHBORHOOD FELL INTO DEEP DECAY. MANY OF THE ONCE GRAND OFFICE BUILDINGS ARE RENTED TO MOM AND POP STORES OR CHEAP SOUVENIR KNICK-KNACK SHOPS. ONLY NOW THERE'S A GLIMMER OF REVITALIZATION.

A KEY INGREDIENT IN THIS TURNAROUND IS PEOPLE, PEOPLE WILLING TO MAKE DOWNTOWN THEIR HOME. IT'S TRUE DOWNTOWN LACKS SOME OF THE COMFORTS PEOPLE HAVE GROWN USED TO LIKE GOING TO A SUPERMARKET OR A CONVENIENCE STORE IF YOU RUN OUT OF MILK IN THE MIDDLE OF THE NIGHT. BUT LIKE THE PIONEERS OF THE PAST, PEOPLE HERE HAVE LEARNED TO FORAGE FOR WHAT THEY NEED.

JASON 71>> YEAH, I'VE GOT MY BIKE NOW. I'M GOING TO TAKE OFF FOR THE GRAND CENTRAL MARKET.

GAY YEE>> PEOPLE LIKE JASON ARE LEARNING TO TAKE ADVANTAGE OF WHAT'S AVAILABLE AROUND THEM.

JASON 71>> YOU CAN JUMP ON YOUR BIKE, AS I OFTEN DO, AND JUST PICK A DIRECTION AND GO. THERE'S JUST SO MUCH DIVERSITY AND CULTURE GOING ON THAT YOU CAN JUST TAKE PART IN IT.

GAY YEE>> HE BUYS TOOTHBRUSHES IN THE TOY DISTRICT, GROCERIES AT THE GRAND CENTRAL MARKET TWO BLOCKS AWAY, BUT JASON IS THE FIRST TO TELL YOU THAT LIVING DOWNTOWN IS NOT FOR EVERYONE. TO LIVE DOWN HERE, YOU NEED --

JASON 71>> ADAPTABILITY. YOU HAVE TO BE ABLE TO ADAPT TO YOUR SURROUNDINGS AND BE A SWISS ARMY KNIFE TO WHATEVER COMES YOUR WAY.

TOM GILMORE>> WELL, THIS IS PRETTY TYPICAL.

GAY YEE>> DEVELOPER, TOM GILMORE, HAS RENOVATED THREE DOWNTOWN BUILDINGS SO FAR AND HAS PLANS FOR MORE.

TOM GILMORE>> NOW THAT PEOPLE ARE BEGINNING TO BE VERY, VERY TIRED OF SITTING ON HIGHWAYS FOR THEIR ENTIRE LIVES, THEY'RE LOOKING FOR AN URBAN LIFESTYLE TO TAP INTO.

GAY YEE>> BUT THE PATH TO DOWNTOWN RENEWAL STILL HAS A POTHOLE OR TWO. GILMORE HAS BEEN CRITICIZED BY A TENANTS GROUP OF CUTTING CORNERS ON SAFETY IN HIS BUILDINGS.

TOM GILMORE>> IF I WERE LETTING PEOPLE INTO A BUILDING THAT WASN'T SAFE, THE GUY WHO'S ON THE HOOK BIGGEST THERE IS ME. I OPEN MYSELF UP TO THE LARGEST LIABILITY YOU CAN IMAGINE, SO I REQUIRE THAT SOMEBODY IN THE BUILDING DEPARTMENT OR THE FIRE DEPARTMENT SIGNS OFF AND SAYS, "YES, YOU MAY OCCUPY THIS BUILDING", AND THAT'S WHAT WE GOT.

GAY YEE>> TENANTS WE TALKED WITH DON'T SEEM WORRIED.

JOHN LINDAUER>> I LIVE IN, YOU KNOW, ONE OF THE BIGGER SPACES HERE AND EVERY SQUARE INCH OF THAT THING IS COVERED WITH FIRE SPRINKLER OUTLETS. YOU KNOW, TO ME, THAT'S SO NOT AN ISSUE.

GAY YEE>> LIKE PIONEERS ANYWHERE, THE DOWNTOWN DWELLERS LIKE JASON ARE ADVENTUROUS, OPTIMISTIC, DETERMINED, AND THEY'VE LEARNED TO RELY ON EACH OTHER.

JASON 71>> IT'S WONDERFUL. I MEAN, THE INTERACTION YOU HAVE WITH OTHER PEOPLE AND THE SENSE OF COMMUNITY WHEN I THOUGHT THERE WOULD BE MORE OF A SENSE OF ISOLATION. IT'S A VERY UNIQUE PLACE TO LIVE.

JESS>> GAY YEE JOINS US NOW. THE NOTION THAT THERE'S NOTHING GOING ON IN DOWNTOWN LOS ANGELES AFTER SIX O'CLOCK IS NOT NECESSARILY TRUE THEN, HUH?

GAY YEE>> IT IS AND IT ISN'T, BECAUSE RIGHT NOW IT DOES STILL FOLD UP AFTER SIX O'CLOCK AND THE BUSINESSES ARE CLOSED, BUT THEY HAVE MANAGED TO FIND A WAY. ONE OF JASON'S PET PEEVES IS THAT HE USES THE RED LINE TO GO TO HOLLYWOOD AND THE LINE CLOSES AT MIDNIGHT, SO HE'S AT A SHOW IN HOLLYWOOD AND HE'S STRANDED. SO HE SAYS, IF YOU REALLY WANT THIS TO BE A 24-HOUR CITY, YOU'D BETTER BE ABLE TO HAVE THE TRANSPORTATION FOR IT.

VAL>> AND WHAT'S WITH THAT NAME TAG?

GAY YEE>> THAT IS JASON'S TRADEMARK.

VAL>> HE WEARS IT ALL THE TIME?

GAY YEE>> IT'S "HELLO, I'M JASON 71" AND 71 IS FOR THE YEAR THAT HE WAS BORN.

VAL>> THAT'S FUNNY. NOW IS THIS AN EXPENSIVE PROPOSITION TO LIVE DOWNTOWN?

GAY YEE>> ACTUALLY, NO. JASON SPENDS LESS THAN $1000 FOR HIS 800-SQUARE-FOOT LOFT. THEY VARY FROM ABOUT, YOU KNOW, THE MID-$1000 RANGE TO ON UPWARD, DEPENDING ON THE AMOUNT OF SPACE.

VAL>> RENTAL, OBVIOUSLY.

GAY YEE>> RENT, THAT'S RIGHT, PER MONTH. SO IT'S QUITE LIVABLE COMPARED TO WHAT YOU FIND ELSEWHERE IN THE CITY.

JESS>> ARE ANY OF THEM CONDOMINIUMS THAT ARE FOR SALE?

GAY YEE>> I WOULD IMAGINE THAT SOME OF THEM ARE. MOST OF THE PEOPLE WE SPOKE TO WERE RENTERS AND, COMPARED TO WHAT YOU HAVE IN L.A., THEY FIND IT COMPARABLE. THE FACT IS, MORE PEOPLE ARE COMING IN BECAUSE YOU'RE RUNNING OUT OF SPACE ELSEWHERE.

JESS>> AND LIVING IN A LOFT IS KIND OF CHIC TOO.

GAY YEE>> VERY CHIC.

VAL>> OH, IT'S VERY COOL, JESS. YOU OUGHT TO TRY IT (LAUGHTER). THANK YOU SO MUCH, GAY. THAT WAS FUN.

TOMORROW ON LIFE AND TIMES, NICKEL MATINEES AND DOUBLE FEATURES WENT AWAY A LONG TIME AGO, BUT A TREASURED OLD MOVIE HOUSE IN SANTA MONICA HAS SURVIVED, OR HAS IT?

>> WE SHOULDN'T DESTROY THEATERS LIKE THIS. WE DON'T WANT ANOTHER STORE. WE DON'T WANT ANOTHER MALL CREATED HERE.

JESS>> PITY THE POOR CEO'S. THEY'RE STILL GETTING THOSE BIG BONUSES, FAT PAYCHECKS AND LOTS OF PERKS, BUT IN THE WAKE OF ALL THE RECENT CORPORATE SCANDALS, SOME OF THEM SAY THEY'RE EMBARRASSED TO TELL PEOPLE WHAT THEY DO. MEANWHILE, YOUR 401(K) MAY BE EVAPORATING FASTER THAN A SNOW CONE IN PALM SPRINGS.

VAL>> SO WHAT CAN YOU DO TO SURVIVE THE FINANCIAL TURMOIL? WELL, BENJAMIN COLE IS AN INVESTIGATIVE REPORTER WITH THE LOS ANGELES BUSINESS JOURNAL AND HE'S THE AUTHOR OF "THE PIED PIPERS OF WALL STREET: HOW ANALYSTS SELL YOU DOWN THE RIVER", AND YOU ARE TAKING CALLS. WELCOME TO LIFE AND TIMES.

BENJAMIN COLE>> DELIGHTED TO BE HERE, VAL.

JESS>> ARE YOU READY FOR THE FIRST CALL? IT SAYS WHAT SHOULD I BE SELLING AND WHAT SHOULD I BE BUYING?

BENJAMIN COLE>> BRING THEM ON (LAUGHTER). LET'S SEE WHAT WE CAN DO FOR THEM.

VAL>> (LAUGHTER) A LOT OF PEOPLE HAVE ABANDONED THE STOCK MARKET, CORRECT?

BENJAMIN COLE>> WE'RE SEEING THE INFLOWS INTO MUTUAL FUNDS DECREASE WITH EACH PASSING WEEK, SO I GUESS YOU'RE CORRECT ON THAT ONE.

VAL>> BUT ISN'T IT ALSO THE TIME WHEN THERE'S REALLY GOOD BARGAIN-HUNTING? BUT YOU'RE NOT RECOMMENDING THAT YET?

BENJAMIN COLE>> WELL, THERE'S MIXED OPINIONS ON THAT. YEAH, YOU WANT TO BUY WHEN EVERYBODY'S SCARED, BUT THIS BEAR MARKET HAS THE LOOKS OF SOMETHING THAT HAS A LOT OF LEGS. I THINK THERE IS A GENUINE CONCERN THAT, WHEN MR. AND MRS. AMERICA LOOK AT THEIR 401(K) ON A QUARTERLY OR SEMI-ANNUAL OR ANNUAL BASIS, THEY'RE GOING TO DECIDE TO PULL BACK FROM THE STOCK MARKET, WHICH WILL HAVE THE EFFECT OF DECREASING FLOWS INTO MUTUAL FUNDS IN THE FUTURE AND WHAT WILL SORT OF PERPETUATE A BEAR MARKET.

JESS>> LET'S GET SOME OF THOSE CALLS NOW WE TALKED ABOUT. JIM, YOU'RE ON LIFE AND TIMES.

JIM>> YES, GOOD EVENING, PANEL. I'D LIKE TO KNOW NOW, BLUE CHIP STOCKS, LARGE COMPANIES SUCH AS IBM, COCA-COLA, DISNEY, THEY'RE VERY STABLE AND THEY'VE BEEN IN EXISTENCE FOR MORE THAN FORTY OR FIFTY YEARS OR MORE. I DON'T THINK THAT THESE LARGE BLUE CHIPS WOULD COMMIT THE ACCOUNTING ERRORS THAT THESE NEWER COMPANIES HAVE PERPETRATED.

BENJAMIN COLE>> WELL, YOU MIGHT WANT TO STAY IN BLUE CHIPS. THERE'S A COMPLICATED STRATEGY CALLED SELLING CALL OPTIONS, SO YOU CAN KEEP YOUR STOCKS WHILE SELLING THEM OFF AT AN EIGHTEEN PERCENT ANNUAL YIELD THROUGH A CALL OPTION. YOU MIGHT ALSO WANT TO LOOK INTO A JUNK BOND MUTUAL FUND AT THIS TIME WHERE THE YIELDS ARE FAIRLY HIGH AS WELL AND WAIT FOR THE MARKET TO TURN AROUND.

JESS>> BUT SOME OF THOSE STANDARD ISSUES HAVE BEEN IN BIG TROUBLE TOO.

BENJAMIN COLE>> YEAH, THERE DOESN'T SEEM TO BE --

JESS>> -- I THINK OF XEROX, IN PARTICULAR.

BENJAMIN COLE>> THERE DOESN'T SEEM TO BE ANY MORE GUARANTEES ON WALL STREET THAT A COMPANY'S ACCOUNTING PROCEDURES ARE KOSHER AND THE CHALLENGE BEFORE WALL STREET AND, OF COURSE, THE SEC CHAIRMAN, HARVEY PITT, AND EVEN PRESIDENT BUSH, IS TO RE-ESTABLISH FAITH IN WALL STREET THAT THERE ARE STANDARDS THAT ARE ADHERED TO.

JESS>> SO WE CAN BELIEVE THE EARNINGS REPORTS.

BENJAMIN COLE>> SO WE CAN BELIEVE THE EARNINGS REPORTS.

VAL>> WE HAVE A QUESTION NOW FROM SHARON IN CULVER CITY. SHARON, YOU'RE ON LIFE AND TIMES.

SHARON>> HI, GOOD EVENING. MY QUESTION IS WHAT WOULD BE YOUR SUGGESTION AS TO TRANSFERRING FROM A FORMER EMPLOYER 401(K) AND WHERE TO TAKE THAT MONEY AND PUT IT NOW AND SHOULD I SPEAK TO MY LOCAL BANK AND HAVE THEM DO, YOU KNOW, THE APPROPRIATE SELECTION?

VAL>> DID YOU HEAR THE QUESTION?

BENJAMIN COLE>> SHE'S OVER-CONCENTRATED IN A 401(K), I GATHER FROM HER. SHE WOULD LIKE TO DIVERSIFY HER PORTFOLIO, WHICH IS AN EXCELLENT IDEA. I WOULD SUGGEST THAT ANYONE WHOSE 401(K) KEEPS THEM SO CONCENTRATED IN THEIR EMPLOYER STOCK ONLY DO EVERYTHING THEY CAN TO DIVERSIFY THEIR PORTFOLIO. LOOK AT SOME OTHER STOCKS. LOOK AT INTEREST-BEARING INSTRUMENTS. EVEN LOOK AT THE HOUSING MARKET, WHICH HAS DONE PRETTY WELL IN THE LAST COUPLE OF YEARS. DIVERSITY HAS ALWAYS BEEN THE BULWARK AGAINST DOWNDRAFTS IN ANY PARTICULAR SEGMENT OF THE MARKET AND I THINK THAT'S SOMETHING THAT'S TIME-TESTED AND WILL CARRY FORTH INTO THE FUTURE AS WELL.

JESS>> WE HAVE A CALL FROM MIKE FROM SILVER LAKE. MIKE, YOU'RE ON LIFE AND TIMES.

MIKE>> HI, GOOD AFTERNOON. MY QUESTION IS, WOULD IT BE A BETTER TIME JUST TO BAIL OUT ON THE WHOLE 401(K) DEAL AND TAKE THE TAX PENALTY RATHER THAN WATCH IT JUST ALL DWINDLE AWAY?

BENJAMIN COLE>> WELL, I DON'T THINK IT WILL ALL DWINDLE AWAY. I DON'T THINK WE'RE LOOKING AT THE KIND OF BEAR MARKET WE SAW IN THE LATE 1920'S. I THINK WE ARE POSSIBLY LOOKING AT A SUSTAINED BEAR MARKET OF A FEW MORE YEARS. OPINIONS ARE A DIME A DOZEN ON WALL STREET AND WORTH IT TOO (LAUGHTER). YOU MIGHT WANT TO HANG IN THERE AND EVEN INCREASE YOUR EXPOSURE TO WALL STREET IF YOU CAN PICK SOME NICE STOCKS AT THIS TIME. THEY ARE CHEAPER THAN THEY WERE A FEW YEARS AGO.

VAL>> AND DOESN'T IT ALSO DEPEND ON HOW MUCH TIME YOU HAVE? I MEAN, IF YOU'RE YOUNG, YOU CAN AFFORD TO WAIT OUT A BEAR MARKET AND YOUR 401(K) MAY COME BACK, BUT IF YOU'RE ON THE VERGE OF RETIREMENT --

BENJAMIN COLE>> -- WELL, A YOUNG WOMAN LIKE VAL ZAVALA MAY WANT TO STAY IN THE STOCK MARKET. SOME OLDER LIKE GUYS LIKE US (LAUGHTER) MAY WANT TO LOOK AT INTEREST-BEARING INSTRUMENTS TO TAKE US INTO RETIREMENT. YES, THAT'S TRUE.

JESS>> BUT STILL THE ADVICE WE'RE ALL GETTING, AND MAYBE IT'S FROM SELF-SERVING BROKERS, IS TO HANG IN THERE.

BENJAMIN COLE>> AND THERE IS SOME LOGIC TO IT. YOU DO WANT -- I MEAN, WHY BUY AT THE TOP? SO THERE IS SOME LOGIC TO BUYING WHEN THE MARKET IS DOWN AND IT APPEARS TO BE GOING DOWN BECAUSE THAT'S WHEN FEAR IS WORSE. I HATE TO THROW A JARGON OUT THERE, BUT WE STILL SEE MULTIPLES OR PRICE EARNINGS RATIOS ON WALL STREET AT HISTORIC HIGHS AND WE STILL SEE A LOT OF UNCERTAINTY.

THERE'S TALK OF WAR IN THE MID-EAST AND, AS I SAID, I THINK MR. AND MRS. AMERICA, WHEN THEY LOOK AT THEIR 401(K) PLANS, THEY'RE NOT STOCK MARKET JUNKIES LIKE I AM. THEY LOOK AT THINGS MAYBE QUARTERLY, SEMI-ANNUALLY, AND MAKE ADJUSTMENTS THERE. I THINK THAT'S WHEN YOU'RE GOING TO FIND THAT THIS BEAR MARKET DOES HAVE ANOTHER LEG WHEN MR. AND MRS. AMERICA WITHDRAW FROM THE MARKET COMING AT THE END OF THIS YEAR AND ALLOCATE MORE INTO MONEY MARKET FUNDS OR SAFER INVESTMENTS, WHAT ARE PERCEIVED AS SAFER INVESTMENTS.

VAL>> WE HAVE A QUESTION NOW FROM DAVID IN LONG BEACH. DAVID, YOU'RE ON LIFE AND TIMES.

DAVID>> YES, HI, GOOD AFTERNOON. I WAS JUST WONDERING WHY DO ANALYSTS ON THE BUSINESS CHANNEL CONTINUALLY SAY THAT THE S&P 500 IS OVER-VALUED, AND IT'S BEEN DOWN FOR OVER THREE YEARS?

VAL>> DID YOU GET THAT QUESTION?

BENJAMIN COLE>> YEAH. DAVID, THAT'S AN EXCELLENT QUESTION BECAUSE IT WAS WAY OVER-VALUED THREE YEARS AGO. IT'S COMING BACK TOWARDS HISTORICAL NORMS. I'LL TRY TO NOT TALK SO MUCH JARGON, BUT NORMAL TRADING RANGE FOR EVEN BLUE CHIP STOCKS IS ELEVEN TO FOURTEEN TIMES EARNINGS. IT GOT UP TO TWENTY-FIVE, THIRTY TIMES EARNINGS IN THE LATE 1990'S AND RETREATED BACK TO THE LOW TWENTIES.

THERE'S CERTAINLY A CASE TO BE MADE THAT WE COULD SEE STOCKS TRADING AT FIFTEEN TIMES EARNINGS WITHIN A YEAR OR TWO, WHICH WOULD STILL MEAN ANOTHER TWENTY-FIVE PERCENT REDUCTION IN THE DOW IN THE NEXT COUPLE OF YEARS IF EARNINGS HELD STABLE. NOW IF EARNINGS INCREASE, MAYBE THE DOW CAN HOLD STEADY.

JESS>> CHARLES FROM PALOS VERDES ALSO HAS A QUESTION. CHARLES, YOU'RE ON LIFE AND TIMES.

CHARLES>> YES, THANK YOU VERY MUCH FOR TAKING THE CALL. SPECIFICALLY, WOULD YOU RECOMMEND THAT PEOPLE LOOK TO COMPANIES NOW THAT WOULD MAYBE PASS GADFLY INITIATIVES FROM SHAREHOLDERS THAT WERE PROPOSED IN THE PAST SPECIFICALLY, FOR EXAMPLE, LET'S SAY CUMULATIVE VOTING FOR DIRECTORS SUCH THAT THE MINORITY VIEWS ARE NOW REPRESENTATIVE ON THE BOARD?

BENJAMIN COLE>> I CERTAINLY THINK THAT CORPORATE GOVERNANCE, THE WAY A COMPANY CONDUCTS ITSELF, THE POWER IT GIVES TO ITS AUDIT COMMITTEE, THE QUALITY OF ITS AUDITOR, ITS WILLINGNESS TO QUICKLY ANNOUNCE AND GET OUT INTO THE PUBLIC MARKET BAD NEWS, THE CHARACTER OF A COMPANY IS MORE IMPORTANT THAN IT EVER HAS BEEN BEFORE.

THE TRICK IS, EVERYBODY THOUGHT ENRON WAS FULL OF THE SMARTEST GUYS IN THE WORLD BEFORE ENRON COLLAPSED AND WHO WOULD EVER HAVE THOUGHT TWO YEARS AGO THAT WORLDCOM, WHO WE ALL USED TO MAKE PHONE CALLS THROUGH, WOULD COLLAPSE. BUT IF YOU TRUST A COMPANY'S MANAGEMENT AND YOU FEEL THAT THEY ARE ADHERING TO PRINCIPLES OF GOOD CORPORATE GOVERNANCE, THAT'S CERTAINLY A PLUS SIGN.

VAL>> IT SEEMS LIKE A HARD THING TO TELL, BUT WE'LL GO ON TO OUR NEXT QUESTION. SHEILA FROM SANTA BARBARA HAS A QUESTION. SHEILA, YOU'RE ON LIFE AND TIMES.

SHEILA>> I HAVE MONEY IN A MONEY MARKET ACCOUNT. IF THE MARKET BOTTOMS OUT, AM I IN DANGER OF LOSING THAT MONEY AND WHAT INTEREST-BEARING SITUATION SHOULD I BE IN?

BENJAMIN COLE>> WELL, IF YOU'RE RISK-AVERSE, A MONEY MARKET FUND IS A FINE PLACE TO BE. YOU MIGHT WANT TO BE IN A FUND FULL OF -- U.S. TREASURY BILLS MIGHT YIELD A LITTLE BIT MORE. YOU KNOW, IN THE LAST FEW YEARS, THERE WAS A SENSE THAT YOU HAD TO BE MACHO OR THAT YOU SOMEHOW HAD TO BE IN WALL STREET OR YOU WERE OVERLY TIMID. I DON'T THINK THAT'S RIGHT. I THINK, IF YOU ARE MORE COMFORTABLE IN A SAFE INVESTMENT THAT YIELDS YOU THREE, FOUR OR FIVE PERCENT A YEAR AND YOU CAN SLEEP AT NIGHT, TAKE YOUR SLEEP AND LET SOMEBODY ELSE GO FOR THE WILD RIDE ON WALL STREET.

JESS>> BUT A YEAR AGO, YOU WOULD HAVE THOUGHT YOU WERE REALLY MISSING OUT IF YOU HAD DONE THAT.

BENJAMIN COLE>> IT'S EASY TO FEEL LIKE YOU'RE MISSING OUT, BUT THERE SOME THINGS TO BE SAID FOR SAFETY TOO.

JESS>> YES, INDEED.

VAL>> BENJAMIN COLE FROM THE L.A. BUSINESS JOURNAL, THANK YOU SO MUCH FOR YOUR EXPERTISE.

BENJAMIN COLE>> THANKS, VAL, FOR HAVING ME.

VAL>> AND ALSO AUTHOR. THANK YOU SO MUCH.

BENJAMIN COLE>> THANKS.

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PATT MORRISON>> WE'VE ALL BEEN TOLD "YOU ARE WHAT YOU EAT", BUT WHAT HAPPENS IF WHAT YOU'RE EATING ISN'T WHAT YOU THOUGHT IT WAS? PATT DIGS INTO THAT QUESTION IN TONIGHT'S INFINITELY MORRISON.

PATT MORRISON>> YOU MAY HAVE READ OR HEARD THE NEWS STORIES. YOU MAY HAVE BEEN SORRY YOU DID. THIS PRODUCT WITH ALL ITS VARIANCES, A GREAT FAVORITE AMONG THE SVELTE SET, A TASTY LOW-FAT SNACK, A VIRTUOUS ALTERNATIVE TO POTATO CHIPS. PARENTS FELT THEY COULD FEED IT TO THEIR CLAMBERING TODDLERS WITHOUT A PANG OF CONSCIENCE. EVERYONE CAREFULLY READ THE LABEL AND SAW THAT IT WAS GOOD. LOW IN FAT, LOW IN CALORIES, HIGH IN FIBER AND ALL MANNER OF GOOD AND SALUTARY INGREDIENTS.

PIRATE'S BOOTY WAS SUCH A HOT COMMODITY THAT VANITY FAIR LISTED IT AS "IN" AND IT DOESN'T GET ANY "INNER" THAN THAT. AND THEN, AS QUICKLY AS THE AIR WENT OUT OF WORLDCOM OR ENRON, IT ALL COLLAPSED. SOME SKEPTICAL SOUL AT GOOD HOUSEKEEPING MAGAZINE TESTED THE LITTLE PUFFS AND FOUND OUT THE VICIOUS TRUTH. HOWEVER SCRUPULOUSLY ANYONE READ THE LABEL, IT DIDN'T MATTER. THE LABEL LIED. INSTEAD OF THE TWO AND A HALF GRAMS OF FAT AND 128 CALORIES IT CLAIMED ON THE BAG, IT HAD EIGHT GRAMS OF FAT, EVEN TEN. THE LITTLE PUFFS WERE JUST ORDINARY JUNK FOOD DRESSED IN SHEEP'S CLOTHING.

MOTHERS MIGHT AS WELL HAVE BEEN FEEDING THEIR LITTLE ONES CANDY BARS. PIRATE'S BOOTY, IN FACT, WAS NO BETTER THAN A BAG OF POTATO CHIPS AND WORSE, IN FACT, FOR IT PRETENDED RIGHT THERE ON THE LABEL TO BE SOMETHING THAT IT WASN'T. INITIALLY, THE COMPANY SAID THE DIFFERENCE WAS THE RESULT OF A NEW MACHINE CHANGING NUTRITIONAL INFORMATION, BUT NOW IT'S NOT SAYING ANYTHING AT ALL. AND NOW THERE'S A CLASS ACTION SUIT ON BEHALF OF EVERYONE WHO GOT TAKEN. THE WOMAN WHO FILED IT CLAIMED SHE AND, BY EXTENSION, EVERY OTHER CONSUMER, SUFFERED EMOTIONAL DISTRESS OVER THIS ALONG WITH WEIGHT GAIN, MENTAL ANGUISH, OUTRAGE AND INDIGNATION.

I KNOW WE'RE ALL UPSET, BUT PLEASE, A LITTLE MODERATION. IT'S NOT A CRIME WAVE. JUST JUNK FOOD.

VAL>> WELL, YOU CAN FIND LOVE IN THE MOST UNLIKELY PLACES, BUT MORE AND MORE, SOME PEOPLE ARE FINDING IT ON THE INTERNET. TONIGHT YOU WILL MEET A CALIFORNIA MAN WHO TOOK AN ONLINE JOURNEY THAT WOUND UP IN VIETNAM.

JESS>> THAT'S WHERE HE FOUND A NEW BRIDE AND A NEW FAMILY. CLEARLY, SOME MIGHT FROWN ON HIS METHOD OF SHOPPING FOR A SPOUSE, BUT AS GREG [MONTEMERA] REPORTS, THIS LOVE STORY APPEARS TO HAVE A HAPPY ENDING.

HAROLD FICK>> TWO WEEKS AGO, I CAME TO HO CHI MINH TO MEET THE WOMAN I FELL IN LOVE WITH.

[FILM CLIP]

GREG>> THEY SAY LOVE KNOWS NO BOUNDARIES, ESPECIALLY IN THE INTERNET AGE. THAT'S HOW HAROLD FICK FROM CALIFORNIA MET NAT LINH FROM VIETNAM JUST THREE MONTHS AGO.

HAROLD FICK>> I'VE BEEN SINGLE ABOUT TWENTY-FIVE YEARS. I HAVE DATED, WANTED A LONG-TERM RELATIONSHIP, BUT FOR WHATEVER REASON, I NEVER WAS ABLE TO CONNECT.

GREG>> HAROLD IS FIFTY-SEVEN, WITH THREE GROWN CHILDREN FROM A PREVIOUS MARRIAGE, BUT WANTED A CHANCE TO HAVE ANOTHER FAMILY.

HAROLD FICK>> I WAS LOOKING FOR FAMILY VALUES, STRONG FAMILY VALUES. IT BROUGHT ME TO VIETNAM.

GREG>> THROUGH A WEBSITE CALLED VNLADIES.COM, HAROLD SEARCHED THROUGH HUNDREDS OF PHOTOS AND PROFILES OF VIETNAMESE WOMEN SEEKING MARRIAGE. OVERWHELMED, HE ASKED DIANE VO, THE OWNER OF THE SITE, FOR SOME HELP.

DIANE VO>> HE ASKED ME IF I CAN PICK OUT TEN LADIES ON OUR WEBSITE AND SAID HE WOULD PAY FOR THE TEN PROFILES. IT'S TEN DOLLARS FOR EACH PROFILE.

GREG>> AFTER THREE MONTHS OF E-MAILS AND PHONE CALLS, HAROLD NARROWED HIS SEARCH AND DECIDED THAT 33-YEAR-OLD LINH WAS THE ONE.

HAROLD FICK>> IT WAS A BEAUTIFUL MATCH AND WE STARTED TALKING AND WE WANTED THE SAME THINGS, SO I ASKED HER OVER THE INTERNET TO MARRY ME.

GREG>> HAROLD THEN SET OUT FOR VIETNAM TO MEET HIS FUTURE WIFE AND ASK LINH'S STEPMOTHER'S PERMISSION TO TAKE HER HAND IN MARRIAGE.

LINH (INTERPRETED)>> FINDING LOVE ON THE INTERNET MADE ME NERVOUS, BUT WHEN I MET HAROLD AND SPENT TIME WITH HIM, I KNEW THAT HE NEEDS ME AND I NEED HIM.

DIANE VO>> VIETNAM IS DIFFERENT. IT'S A THIRD WORLD COUNTRY. PEOPLE OVER THERE DO NOT MEET MEN IN THE BAR LIKE UNITED STATES. NOW WITH THE INTERNET, THE LADIES CAN MAIL VIETNAMESE MEN AS WELL, A CHANCE TO MEET ON THE INTERNET.

GREG>> LINH WAS SHARING THIS CRAMPED ONE-ROOM APARTMENT WITH HER TWO SONS, AGE SIX AND EIGHT, AND A FRIEND. THE BOYS HAVE NEVER KNOWN THEIR OWN FATHER, BUT NOW THEY'LL HAVE HAROLD.

HAROLD FICK>> AND I'M ADOPTING THE CHILDREN. SOMETHING CLICKED AND I SAID I'D LIKE TO BE THEIR FATHER, YES, AND THEY WANT ME TO BE THEIR FATHER.

GREG>> DIANE VO, WITH HER EXTENSIVE BACKGROUND IN THE NATURALIZATION PROCESS, WORKED WITH HAROLD THROUGH HER WEBSITE AND HELPED HIM WITH THE IMMIGRATION APPLICATIONS.

DIANE VO>> WITHIN VIETNAM, IT TAKES ABOUT SIX MONTHS TO NINE MONTHS.

GREG>> UNTIL THEN, HAROLD AND LINH WILL KEEP COMMUNICATING VIA THE INTERNET AS THEY DID BEFORE THEY MET. BUT EVEN IN PERSON, IT'S BEEN KIND OF TOUGH, GIVEN THAT NEITHER IS COMFORTABLE YET WITH THE OTHER'S LANGUAGE.

LINH (INTERPRETED)>> IN THE BEGINNING, IT WAS VERY DIFFICULT TO UNDERSTAND EACH OTHER. I COULDN'T COMMUNICATE WITH HIM. I COULDN'T EXPRESS MYSELF. HOWEVER, WHEN WE ARE IN LOVE AND WE CAN COMMUNICATE THROUGH OUR EYES, WE CAN GUESS WHAT EACH OTHER WANTS TO SAY.

GREG>> LIKE CROSSING THESE CHAOTIC CONGESTED STREETS IN HO CHI MINH CITY, HAROLD AND LINH WILL FACE MANY OBSTACLES, BUT NEITHER HAS ANY DOUBTS ABOUT THEIR FUTURE TOGETHER.

HAROLD FICK>> WE BOTH WANT THOSE THINGS. SHE WANTS A BETTER LIFE. I WANT COMPANIONSHIP. BUT ONE OF THE THINGS WE BOTH ARE LOOKING FOR, BOTH TOGETHER, IS A FAMILY.

LINH (INTERPRETED)>> TRUE LOVE COMES FROM THE HEART AND YOU CAN NEVER QUESTION WHEN LOVE COMES.

GREG>> TWO WORLDS APART, BUT SHARING ONE DREAM.

JESS>> FOR EVERY HAPPY ENDING, THERE ARE MANY OTHER CASES SUCH AS THIS ONE THAT DON'T TURN OUT SO WELL. BUT FOR THESE FOLKS, ALL WE CAN SAY IS GOOD LUCK.

VAL>> THAT IS AN UNUSUAL STORY BECAUSE YOU'VE HEARD THE HORROR STORIES TOO WHERE THE WOMEN COME OVER AND THEY THINK THEY'RE GOING TO BE BRIDES AND THEY END UP BEING VIRTUAL SLAVES OR WHO KNOWS WHAT. SO SHE GOT VERY LUCKY.

JESS>> AND HE TOO, APPARENTLY.

VAL>> AND THE KIDS. THAT'S GREAT. THAT IS OUR PROGRAM FOR TONIGHT. THANK YOU SO MUCH FOR WATCHING. YOU CAN LISTEN TO RECENT BROADCASTS THROUGH OUR WEBSITE AT WWW.KCET.ORG.

JESS>> NOW FOR ALL OF US HERE AT LIFE AND TIMES, HAVE A GREAT EVENING.

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