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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: pater tenebrarum who wrote (22906)	8/12/1999 8:09:00 PM
From: John Madarasz	Read Replies (2) \| Respond to of 99985

Random post here to no one in particular... gruntal.com Regards to all, JM

To: pater tenebrarum who wrote (22906)	8/12/1999 9:13:00 PM
From: Joan Osland Graffius	Read Replies (1) \| Respond to of 99985

hb, Thanks for your response on liquidity. I agree with your discussion. What I was trying to say is the system is currently working, just getting more costly in the credit markets and in turn this should bring down the price of stocks. The boys and girls in the bond pits are going to have to keep increasing rates to attract sufficient capital to pay for our spending sprees of the past. I personally don't think liquidity has to become a problem, our debt will have to stay sufficiently attractive to keep some of the foreign money in the US. If this takes higher interest rates then the rates will go higher. You are correct that the dollar will also suffer. This could make for some ugly stock market action like in the 70's and early 80's. Boom and Bust every other year. This economic cycle will produce some interesting new case studies for our universities. Of course if sufficient cash comes out of these markets maybe the US citizens could finance their own debt. I guarantee you if this happens the government would have all new faces in Washington. <ggg> Joan