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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 148.32-3.3%Nov 14 9:30 AM EST

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To: Mason Barge who wrote (6052)6/27/1998 2:15:00 PM
From: Joseph Beltran  Read Replies (1) of 10921
 
Mason,

You posed a very interesting scenario, no doubt. Dumping $500 billion of U.S. bonds on the market would no doubt create havoc, but from a supply/demand perspective, wouldn't the japanese end up getting only a fraction on the value of those bonds? In other words, to accomodate that sort of supply it seems that the japanese would have to be willing to significantly "discount" the face value of the bonds, resulting in a significantly pared down net price. Short term rates would go crazy, no doubt.... If the warranted discount is significant enough, congress should consider a special spending bill to repurchase and retire those bonds. (We may have to raid a few surplus budgets here and there, if any exist and mortgage some state parks and other national assets...) They might get one hell of a deal.
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