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

To: Earlie who wrote (74001)	1/19/2000 9:59:00 AM
From: sammaster	Respond to of 132070

Fed refrains from 9:30 a.m. open market operations biz.yahoo.com looks like fed aint playing today....maybe those foreigners dont want our money anymore so fed doesnt need to make more here...<g> samir

To: Earlie who wrote (74001)	1/19/2000 10:28:00 AM
From: Les H	Respond to of 132070

You need to add that Japan is buying bonds to keep the Yen cheap.

To: Earlie who wrote (74001)	2/10/2000 11:09:00 PM
From: BGR	Read Replies (2) \| Respond to of 132070

Earlie, Sorry about the delay in replying. A lot has changed since the time we had our chat. I hope that you and other thread mates are doing well. In particular, I hope that nobody got caught shorting either the 30-year or the Nasdaq. I am particularly concerned about Defrocked, I hope that he is OK. Now coming back to our discussion: 1. The pleasure is all mine. 2. Foreign investors may have been doing this and may have been doing that, but given the way the Dollar has since strengthened against the Euro and the Yen, I respectfully submit that any capital flow out of the USA could not have happenned. Please do not try to wiggle out of this one, you will not do your intelligence any justice otherwise. Call the foreign invesors stupid if you wish instead. BTW, given that Japan's public debt dwarfs the US one on a relative basis, why would anyone want to sell US Treasuries and buy the Japanese bonds? And given that Europe is facing sluggish growth in and inflationary background, why would anyone sell US stocks to buy European stocks? And, if indeed US stock prices are not up, what is this mania that you folks keep talking about, one that is going to cause inflationary pressures due to the wealth effect? If the net asset value of the entire US equity market has gone up, that is enough to prove my point. Distribution is for technicians. And if it hasn't, the wealth effect is a myth. As for the U.S. being put on credit watch by leading credit rating agencies, what has that got to do with my argument about the U.S. Dollar and capital flow out of the U.S.? Michael Burke was short the QQQ too through poots. Does that mean that NASDAQ gains are virtual? 3. I think that you have a good point here. Capital gains are playing a big part in creating the budget surplus. And, possibly, the national debt would not be paid off in 15 years. However, that is a moot point. The trend is towards less Govt. borrowing, which wrecked a havoc in the 30 year market a few days back. And if the market drops, all good things will indeed come to an end. If the market drops, of course. Neither you, nor I know the future. We have our biases. Meanwhile, the capital gains tax receipts will be used to buy back the 30-year, well, actually maturities of all sorts, at least till the market crashes. And it may not crash after all! 4. Does the Euro still look strong to you? As for gold, surely you joke? It is all speculation about this CB doing this and this producer doing that that has been whipsawing gold prices for a long time now. that looks like strength to you? Well, I guess AMZN is showing strength too, then? 5. You have The Economist on your side, and I have the market. And, so I have been told, the market always wins. :-) -BGR.