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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Bill Holtzman who wrote (25725)	7/8/1999 3:48:00 PM
From: Sir Francis Drake	Read Replies (2) \| Respond to of 74651

<OT> Bill, I was not the one who spoke of the gov. revenues etc. If indeed the revenues surplus holds then the scenario you describe could occur. However, I am rather skeptical of the government hanging on to the surplus. Seems to me the history is, that the second they have $1 extra, they contrive some way to spend it wastefully. And so they'll turn to the bond market yet again. Bonds are funny instruments - I find the concept of "goldilocks bond market" very amusing, LOL! Let us imagine that fewer new bonds are coming out onto the market - reduced supply for a reduced demand. Bond buyers who are interested in security, might be willing to pay more for the bond, and so the yield would drop. But on the other hand why is this a "goldilocks" scenario, since the lower yield certainly does not attract the yield seeker? The goldilocks scenario would be: strong bond price AND high yield. That of course militates against the very connection between the price and the yield. So, I find the "bond goldilocks scenario" about as plausible a concept as "a square circle". There is no such animal. Morgan