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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (6032)	1/12/2000 6:39:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 10293

Bill, if we are indeed still running a budget surplus, then more bonds (plus interest) will be redeemed than reissued, thus that side of the equation should contribute rather soak liquidity. Add to that the liberalization of the Japanese Postal system and the result is IMHO, some $200 Billions in excess liquidity on an annual basis. One would think that such a situation will put downward pressure on bond rates, the fact that it does not implies that the market think that the FED will artificially keep higher rates than necessary. What for? I believe to leave them leeway to intervene drastically in the event of a financial accident, which is, IMHO, what worries the FED's a lot right now. Zeev

To: Bill Wexler who wrote (6032)	1/13/2000 10:05:00 PM
From: Bill Wexler	Read Replies (2) \| Respond to of 10293

I'm going to have to stick by my thoughts about the market in general... I was wrong about Intel (boy was I wrong about Intel's last quarter), but I still think that risk in many equities - particularly technology - has become unacceptable with the bond hovering precariously close to 7%. I'm not buying any more tech. I will use the Intel inspired rally to sell some more stock, sell more covered calls, and buy boring banks, tobacco and cream cheese (MO). I think I also mentioned in a previous post that I'm buying Berkshire Hathaway BRK (the "B" shares - which trade at an effective 5% discount to the "A").