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Technology Stocks : All About Sun Microsystems

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To: JavaGuy who wrote (27142)2/3/2000 6:02:00 AM
From: JDN  Read Replies (2) of 64865
 
Dear Java Guy: Dont feel bad for feeling CONFUSED. The best experts are confused cause THIS HAD NEVER HAPPENED BEFORE. Not speaking of the inverted yield but the fact that we have GALLOPING GROWTH and NO INFLATION. Has them DUMBFOUNDED. Now, I will cut to the quick and give you the answer. Interest rates are going DOWN!! They will not go up over the long term. WHY?, because the worlds LARGEST,SAFEST, BORROWER, isnt borrowing anymore!!!!! The USA is intent on exiting the 30yrs bond market all together and ULTIMATELY out of debt ENTIRELY if Clinton's latest plan is implemented--and I believe it will be cause NO REPUBLICAN can dispute paying off the debt and the AMERICAN public once it gets the SMELL of cheap home mortgages will INSIST. So, if you wish to hold long term safe paper you got to GRAB IT WHILE ITS AVAILABLE, HENCE the SCRAMBLE for this paper has driven down the rate and will continue to do so. Now, here is what I see happening. The Fed will continue to raise rates UNTIL a slowdown occurs. IF the slowdown appears abrubt <and I think it will cause in my opinion we HAVE NO INFLATION so any change down spells DEFLATION> THEN the FED will IMMEDIATELY begin to lower interest rates which will then bring the short term rate down and eliminate the ridiculous situation of ST exceeding LT rates. JDN
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