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

To: Freedom Fighter who wrote (68772)	10/7/1999 11:36:00 AM
From: re3	Read Replies (1) \| Respond to of 132070

sofa dude...i bought some brk.b at the mkt at the opening bell... couldn't resist...i bought based on the premise that i think the rally could continue, and besides, i last sold this puppy at 2320...so i'm in at a much cheaper price... notice ko is rallying ? ike

To: Freedom Fighter who wrote (68772)	10/7/1999 2:57:00 PM
From: Knighty Tin	Respond to of 132070

Wayne, I expect spreads to remain high as corporations have no free cash flow and the economy has no savings, so they have to borrow to fund operations and cap spending. They are also borrowing for acquisitions and that could ease off, which would kill stocks. The other side is that the spreads are against Treasuries and whatever we may feel about the phoniness of the "surplus," there is no doubt that Treasury needs are growing much slower than corporate debt needs. So, we may have seen excess borrowing due to Y2K and that may give corporates a temporary window early next year, but, by second quarter it will be back to business as usual.