SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : All About Sun Microsystems
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: High-Tech East who wrote (32472)5/31/2000 1:17:00 PM
From: Charles Tutt  Read Replies (2) of 64865
 
I agree with much of what jhg says, but have a few things to add:

As long as employment remains high, 401-K and other pension money will continue to pour into investment coffers. Much of it is probably currently being sidelined, but that can't last forever. Furthermore, high employment contributes tax dollars that make paying down the national debt possible (see below).

Real interest rates are already high. The strength of the dollar confirms that interest rates are relatively high.

The Treasury is now paying down the national debt rather than continuing deficits; we are finally reaping the benefits of the "peace dividend," as well as welfare reform. The effect of this is to push interest rates lower. That's part of the reason we have an inverted yield curve.

The Fed realizes that one of the main effects of high interest rates is to increase the interest burden on the government, which is (I think) the world's largest debtor. I doubt the Fed wants to make that burden much worse than it already is.

What little inflation we're seeing is primarily oil price related, and that will ease as OPEC production increases.

The bottom line is that the Fed will reach the end of their rope sooner than some think and things will turn around. I'm an optimist.

All JMHO, of course.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News