Re: 1988 50hp merc DOES NOT PUMP WATER BUT ?
Sorry but it's pretty much impossible to run that long without any cooling water, and not have the motor self-destruct. I've run motors in a tank/barrel where they were obviously cooling well, but little or no water was flowing out the exhaust reliefs. Just a matter of backpressure and water flow. The more water you have in the tank (at least halfway up the level of the center section) the more backpressure you'll get and the more likely water will be forced out the exhaust ports.
If you were to run the motor on muffs, I think you'd find that plenty of warm water will run out of the center of the prop, indicating that it's passing thru the powerhead and picking up heat on the way.
You'll likely see normal water flow when you're underway. I'm assuming you do get exhaust gasses out of the reliefs and they aren't plugged.
The lack of water from the telltale is most likely due to plugged hose or telltale fitting, a blast of compressed air up the fitting may clear the telltale.
HTH...........ed