Ask Michael Burke Message Board

STOCKTALK

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.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Knighty Tin who wrote (59373)	5/14/1999 2:13:00 PM
From: BSGrinder	Read Replies (1) of 132070

Michael, I think I am inclined to agree with LT that short-term inflation and higher interest rates are the first step towards the unraveling of the asset bubble, with the ultimate result a deflationary depression. Remember your point about how bond prices are a function of supply and demand as well as inflation expectations? You have made the case for there being an over-supply of debt, which will not go away just because inflation fears subside. Perhaps T-bonds will suffer less than corporates, but isn't the spread more likely to expand by T-bonds lowering more gradually, rather than rising while corporates get bashed? Won't bond buyers require more interest to compensate for the weakening dollar, if "our disastrous economy" becomes more apparent? Thanks for your thoughts, /Kit

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next