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Politics : Ask Michael Burke

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To: BSGrinder who wrote (59389)5/15/1999 12:08:00 AM
From: Knighty Tin  Read Replies (2) of 132070
 
Kit, I am thinking that this resembles the 1930s, not the 1970s. I think the Treasuries get stronger as stocks fall apart, companies default on their debt, mortgages are used to paper the walls of the houses that are never built and the banking system suffers a shock. Essentially, the only place to put money with some hope of getting it back would be in Treasuries. We may get higher rates first, but I think this rise from 4.6% was a major part of that. The supply of bonds will disappear as cos. no longer will expand to meet non-existent demand, and they will no longer take over crappy cos. to complete non-existent synergies.
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