Mohan, I am still holding PSFT. I doubt I will come out of
it even since I bought at 34.5, but I am waiting till
tomorrow to get out.
I don't think the government took this out of the economy as you stated unless of course they
are hiding it under the Senate floor.
Maybe so, but isn't that money that is out of circulation?
Isn't increased government spending (for example, in the
context of Japan) often quoted as a way of stimulating an
economy? On the other hand, don't supply siders argue that
tax cuts are good for the economy because it leaves more
money in the hand of the producers? A budget surplus
seems to be against all this.
Maybe related, maybe not, but economists ought to have
seen the rally in the long bond, which today pushed
yield below 5%, was coming, given the US political
establishment's focus on reducing the deficit. After
all, a smaller deficit means a scarcity of government
bonds. I am not saying that was the only factor.
Lastly, did you say you or someone you know participated in Satyam Computers IPO?? I was
the checking the prices for some of the Indian stocks and found Stayam trading for Rs.583 and
change
Mohan, I love to tell my Satyam story. Thanks for the excuse.
Yes!!! :-) I bought 100 shares for Rs. 10 each, in 1991 I think.
Then, in 1996, with Satyam trading around Rs. 60, send in
another Rs. 5000 for a convertible debenture that can be
converted to another 100 shares on maturity. I think it was
a five year loan. If my memory serves me right, Satyam opened
in the secondary market with only a small premium above the
Rs. 10 IPO price. Ought to have bought more, but the curious
fact is that it is much easier to participate in the
primary market than in the secondary market there. I've
never talked to a stock broker in my life. I guess I will
have to when I finally decide to sell my Satyam shares. |
