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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (2180)	10/17/1999 2:07:00 AM
From: Thomas M.	Read Replies (2) \| Respond to of 3536

Some interesting numbers (from Barron's): Moody's Credit Perspectives 99 Church St., New York, N.Y. 10007 SEPTEMBER 27 ~ Putting upward pressure on U.S. interest rates has been a decline by foreign net lending to U.S. public and private sectors. After peaking at 1996's record $414 billion (or 5.4% of GDP), foreign net lending to the U.S. economy has subsequently declined to 1997's $311 billion (or 3.8% of GDP) and then to 1998's $249 billion (2.9% of GDP). During 1999's first half, foreign net lending to the U.S. proceeded at an even slower annualized rate of $133 billion, approaching only 1.5% of GDP. When a rising current-account deficit last wreaked havoc in the U.S. financial markets, net foreign lending to the U.S. would drop from 1986's $105.7 billion (or 2.4% of GDP) to 1987's $60.9 billion (1.3% of GDP). In terms of a new record current-account deficit, a strengthening world economy, and a diminished net supply of credit market funds from abroad, the parallels between 1987 and 1999 are eerily similar. -JOHN LONSKI