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To: pater tenebrarum who wrote (5520)	1/31/2000 6:59:00 PM
From: IceShark	Read Replies (1) \| Respond to of 42523

an inverted curve means that the markets assess CURRENT economic conditions as being brighter than FUTURE conditions. and the stock market is a discounting mechanism that has so far not yet discounted that fact. Well, maybe. Or some goofy supply demand issue. But you are likely right. I wish Def was here to esplain the mix that is going on in the pits. -ng-

To: pater tenebrarum who wrote (5520)	1/31/2000 7:08:00 PM
From: re3	Respond to of 42523

siliconinvestor.com i'm gonna re-enter tlm tomorrow...down 2 canuck bucks today...ouch. anyone wanna buy ten shares of jdsu ? i'll let ya' have 'em at $ 300 canadian even <g>

To: pater tenebrarum who wrote (5520)	1/31/2000 7:48:00 PM
From: Giordano Bruno	Read Replies (1) \| Respond to of 42523

Interesting inversion speculation from Fridays prudent bear commentary on derivative markets... It is difficult to know exactly what is going on here. Our hunch, however, is that it looks increasingly like an unfolding dislocation in the derivatives market. Keep in mind that the large US banks have more than $28 trillion of interest rate derivatives on the books. Clearly, there were those within the leveraged speculating community that had made a seemingly reasonable bet on a steepening yield curve. This trade has been a big loser. It also is quite likely that the speculators have been shorting or buying put options on the long bond to hedge leveraged positions in mortgages, corporates and agency securities. These trades, as well, have not worked. Not much has worked in the credit markets over the past few months accept narrowing spread trades. Now these trades look vulnerable. We see that the generic 10-year swap spread widened 9 basis points over the past two days. Mortgages, in particular, performed very poorly as the spread between mortgages and 10-year Treasuries surged 10 basis points today and 14 basis points for the week. The spread on Fannie Mae, Freddie Mac and other agency paper also expanded this week. Importantly, these are all indications of less liquidity and increased systemic stress ? stress that has been inevitable with the combination of a desperately overheated economy and highly overleveraged financial system. Going forward, spreads on mortgages and agency securities should be followed closely. This is likely where the most leverage and speculation has developed, hence the area most prone to dislocation.

To: pater tenebrarum who wrote (5520)	2/1/2000 9:31:00 AM
From: Lucretius	Read Replies (1) \| Respond to of 42523

Lack of harmony in the EU?: let us know if you need a blockade-runner -g- EU Threatens To Cut Austria Ties Updated 6:37 PM ET January 31, 2000 Joerg Haider, Leader of the Austrian Rightwing Freedom... (AP) By GEORGE JAHN, Associated Press Writer VIENNA, Austria (AP) - The European Union warned Monday it would take the unprecedented step of severing most political contacts with any Austrian government that includes a far-right party whose leader has praised aspects of Adolph Hitler's regime.