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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: MythMan who wrote (73170)	11/2/1999 12:18:00 PM
From: Real Man	Respond to of 86076

Yeah, who's buying the bond? Feds?

To: MythMan who wrote (73170)	11/2/1999 12:39:00 PM
From: Defrocked	Read Replies (2) \| Respond to of 86076

US bonds have been looking good to the Europeans, I guess. Both the dollar/euro and bonds trading above 50DMA last few sessions. Bonds should encounter a lot of resistance here 113-20/24. Attitude on Euro may change before Thursday. Note the following excerpts from AG's speech. Seems AG has the Fed economists watching housing prices closely. bog.frb.fed.us "We estimate that, over the past five years, the average capital gain on the sale of an existing home net of transaction costs was more than $25,000, almost a fifth of the average purchase price, and roughly equal to the equity extraction financed by debt." "To the average seller of an existing home, the equity extracted net of transaction costs generally far exceeds the down payment on his or her next home purchase. The unencumbered cash to the seller, while financed by debt, is not the seller's debt. Indeed, it appears that a significant amount is spent on consumer goods, especially big ticket items in a manner not materially different from windfall income in general."