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Strategies & Market Trends : Tech Stock Options

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To: donald sew who wrote (57827)11/19/1998 9:33:00 PM
From: Margaret Mateer  Read Replies (3) of 58727
 
Hi Donald,
I didn't really get it either but the key phrase was that our interest rates were going to have to go up "to get all those dollars back that will be floating around the world". So if you add x more months of increasingly negative US savings rate and x more months of huge trade deficits (Bill did say he expected the trade deficits to increase rapidly in the months ahead) where we spend what we don't have to buy bazillions of electronic toys from everyone else in the world I think that there comes a time where the world will eventually realize that we've become a...bad risk (us?) - a debtor nation of such humongous proportions that no matter how inventive, productive, all-powerful, tricky we are, well, maybe just maybe, the world will find a better and less risky place to invest their money...et voila - our rates will have to go up. Does this make any sense? I'm confused too. Economics, the dismal science.
Night,
Peggy

Edit: He did add that this would not happen for a while and that perhaps not until the world financial system developed some faith in the Euro...all that $$$$ has got to be held is some currency! BWDIK
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