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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (9029)	1/28/2000 11:19:00 PM
From: TigerPaw	Read Replies (1) \| Respond to of 17183

is because the gov has said that they are going to be buying back some of the 30 long bonds That is music to my ears .... I will put up with all sorts of volitility to reduced that burdon on my children's children. (At this point, that's who I am in the market for). I greatly fear those who want to thwart this effort before it actually begins. TP

To: SJS who wrote (9029)	1/29/2000 6:30:00 AM
From: Bob Frasca	Respond to of 17183

Thanks for the info. I hadn't heard the news about the government buyback. Is this one of the mechanisms they are going to use to retire the national debt? I always thought that mortgage rates were pegged to the 30 yr bond not the 10 yr bond. (That's what my mortgage lender said when I was trying to decide whether to lock in back in July.)

To: SJS who wrote (9029)	1/29/2000 9:55:00 AM
From: Bill Fischofer	Read Replies (2) \| Respond to of 17183

OT: The Bond The problem with economic models is that they have built-in assumptions and biases and tend to be brittle when those assumptions and biases are invalidated. In the current environment there are two discontinuities being faced simultaneously, and this is throwing a double monkey wrench into the models. The first is that the US Treasury has been issuing 30 year bonds since 1977 and is now no longer providing sufficient "supply" of this benchmark to serve the liquidity needs of the market. In effect, the long bond market is experiencing a liquidity crunch which means it can no longer serve the needs of institutional players. The market is thus being forced to find a new interest rate benchmark for the first time in a generation. The second problem is even more novel. The US government, which has been a net borrower for more than a century, is actually paying down its debt. The last time this happened was in the latter part of the 19th century as the US was retiring its Civil War debt. While some greybeards may still remember life before the 30 year bond, nobody has any experience with the practical impact of repayment on the credit markets. Thus we are in a turbulent transition period for the credit markets, however the result should be highly beneficial in the long run, particularly for corporate borrowers. In the 19th century railroad bonds became the benchmark. In the current environment, I fully expect the corporate bonds of global telecom companies to fill this same role, enabling them to build their "railroads of fiber" around the globe with minimal equity dilution. And yes, this is another reason why I like GBLX.