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To: Giordano Bruno who wrote (18094)	6/21/1999 9:09:00 PM
From: pater tenebrarum	Respond to of 99985

Jim, interesting article - enough disturbing facts in it to make any halfway rational bull nervous. the only argument that i can think of to justify a higher stock market in the intermediate term is: it's a mania! one 1/4 point rate increase won't stop it, 2 times or three times 1/4 point might. let's see what the bond market does if and when it approaches it's recent lows. like i said before, a successful retest could easily ignite a blow-off rally in the stock market. needless to say, a breakdown in the bond would make a re-evaluation of this scenario necessary. regards, hb

To: Giordano Bruno who wrote (18094)	6/21/1999 9:37:00 PM
From: Les H	Respond to of 99985

Currency Intervention Continues The Bank of Japan continued its intervention in the currency markets. Bonds initially rose, but have since retraced their gains. Thirty-year bonds are down 5/32, yield 5.99%. Two-year notes are unchanged, yield 5.56%. THE WEAKER THE BETTER. The Bank of Japan purchased dollars and sold yen. This is their fourth intervention in the currency markets in eleven days. These actions clearly underscore the need for Japan to keep its yen weak in order to stimulate exports. Strong exports are needed to keep the economic recovery in place. Japan clearly does not have faith in its domestic rebound. Bonds initially rose on the news. Thoughts are that Japan will invest the proceeds of the intervention in short dated treasuries. BREAK-UP? European Commission President Prodi said that Italy might abandon the euro if it feels its competitiveness is being eroded. The euro fell on the comments. It is obviously premature at this point to speculate that Italy will discard the euro. Supply is building. The Treasury will auction $15 billion two-year notes on Wednesday. Ford Motor Credit is expected to sell $3 billion in debt sometime this week. The only economic data today will be the Treasury's budget statement for May. Expectations are for a deficit of $23.3 billion. No further data till the release of durable good orders and jobless claims on Thursday. Speakers today include Fed president Broaddus and Fed Governor Gramlich. Have a great day. >>>It's also been mentioned that the Bond Market is going through >>>its Y2K correction now. Many of the companies are rushing bond >>>issues to market before people start holding back their money. >>>Perhaps that's the reason for the rush of IPOs recently. 25 IPOs >>>this week alone.

To: Giordano Bruno who wrote (18094)	6/23/1999 8:05:00 AM
From: Giordano Bruno	Read Replies (2) \| Respond to of 99985

OT Commerce Report Describes Economic Benefits From Internet By BLOOMBERG NEWS WASHINGTON -- The financial benefits of the Internet and high technology extend beyond the quick riches they have brought high-profile entrepreneurs and investors in recent years to the nation's economy as a whole, a new Government study shows. The information technology industry -- which includes everything from the Dell Computer Corporation's PC's, to the Microsoft Corporation's software, to Cisco Systems Inc.'s routers -- generated at least a third of the nation's economic growth between 1995 and 1998, the Commerce Department said in a report released Tuesday. During that period, the gross domestic product rose 22 percent, to $8.7 trillion. Those goods and services also got cheaper and allowed businesses to become more productive, cutting inflation by seven-tenths of a percentage point in 1996 and 1997, the report says. "The improvement in technology, in productivity, is what has made the economy so incredibly attractive in the last couple of years," William J. McDonough, president of the Federal Reserve Bank of New York, said in a speech in New Jersey Tuesday. Tuesday's Commerce Department report, the second in a series of three on technology, does not provide figures measuring total spending on high technology. Instead, it focuses on growth of on-line businesses and companies like Dell that cater to the technology industry. For example, it says almost half of all American workers will be employed in high-technology industries or at companies that rely heavily on technology by 2006. Workers in information technology have been at least twice as productive as other workers from 1990 to 1997 and earn 78 percent more than other workers, the report said. The report "provides fresh evidence that our nation's massive investments in these sectors are producing gains in productivity and that these sectors are creating new and higher-paying jobs faster than any other," Commerce Secretary William M. Daley said in the report. Meanwhile, those who invested in high technology have reaped rewards that outpaced the market as a whole. The Standard & Poor's High Technology index rose more than five times since June 1994, while the broader S.& P. 500 stock index tripled. Also, spending on information technology has quadrupled over the last decade, rising as a share of all business spending on equipment to 53 percent from 29 percent, according to the Commerce Department in a separate report.