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Strategies & Market Trends : Asia Forum

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To: MikeM54321 who wrote (4139)6/3/1998 10:40:00 AM
From: Sam   of 9980
 
Mike,
Lester Thurow said in an article in Atlantic last January or February that the competition from the Euro could be what would bring the US to its knees. I think (emphasize that word) that the reason for this was that if other countries stopped financing our debt, our interest rates would climb to unexpectedly high levels. Bond funds have been lengthening their duration recently, giving us an amazingly flat yield curve. That would suggest to a contrarian that something bad like that may be in the cards in the not very distant future. But first, they have to be lulled into a self-congratulatory stupor as rates fall a little further.
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