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To: clochard who wrote (83574)1/18/2000 10:24:00 AM
From: IceShark  Read Replies (1) | Respond to of 86076
 
That is an interesting idea I hadn't thought about. Market sees a flood of new debt when Congress issues trillions in bonds to make everyone, especially the big boyz, whole after a pullback. -g- This might not be that farfetched if they were going to cover all the debt left unserviceable by a downdraft.

Today's down draft looks to be over, thanks to air drop. Even that little turd rmbs is recovering from the bad news issued over the weekend.



To: clochard who wrote (83574)1/18/2000 10:35:00 AM
From: pater tenebrarum  Read Replies (4) | Respond to of 86076
 
i agree...so in the final analysis, it IS the treasury's credit risk. assuming that an unwinding of the bubble will hit the U.S. as a current account deficit nation with a negative savings rate much harder than the unwinding of the Japanese bubble hit Japan, the credit risk is indeed immense. no wonder S&P has classified the U.S. as a high risk country...
btw, Dan Wollanchuk predicted in an interview on a U.K. TV station that interest rates, crude oil and gold are going to head much much higher from here...