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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Freedom Fighter who wrote (61747)	6/8/1999 10:16:00 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Wayne, I think you have it down pat. Where I have been trying, unsuccessfully, to make the distinction, is between Treasuries and solid Triple As and junkier corporate, muni, and mortgage stuff. I thought and think that others will decide that Treasuries, with lower growth in supply, even negative at some point, will totally decouple from the massive supply of junky corporates and junkier mortgages. We'll see if that works.

To: Freedom Fighter who wrote (61747)	6/8/1999 10:26:00 PM
From: Earlie	Respond to of 132070

Wayne: Excellent comment. I too think our stock/bond markets survive at the whim of the foreign "investors". My view is simplistic Sooner or later, foreigners start to worry about the U.S. buck and in so doing decide that they do not need to hang around for an inevitable crunch as it gets hit. Any worries about the buck and all U.S. denominated assets will go on the block. The overhang of world-wide treasuries is massive and starting to become unstable, the trade deficit is now at obscene levels, and the greenback is being printed as if it were for washroom useage. This is a pure form of economic madness and cannot be sustained. Some foreigner investors are already more than nervous about this. Their problem is "where do I safely put my dough?" The Euro made sense to me, until both the French and German governments tarnished it with their idiotic insistence that the other lower tax rate European jurisdictions bring their tax rates up to the French-German standards (lunatic thinking). The Yen goes nowhere until the Japanese clean up their banking system (which is happening with the speed of concrete curing). And gold is in disrepute,...for the moment (but it is also incredibly cheap by any normal standard). The U.S. has no savings, precious little liquidity, and over-exposure to an air-plant market. My own worry is that many things come together at the same time to really exacerbate the descent. Best, Earlie