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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (40237)	2/13/2000 10:53:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 99985

There are three major sources of excess liquidity on a worldwide basis, IMHO, corporate profits or excess cash flow plus their associated cash thrown into the various 401 k and pension funds, redemption (or imbalance relative to prior times) of US government debt, and the biggest worldwide source of new liquidity is the freeing of the postal system in Japan. All these represent money looking for a place to get some returns. Not finding it, they are bidding up existing assets. AMZN had no difficulties raising close to $2 billions debt in the last six month, they paid 4.75% on the first tranche and the European tranche is, I believe at 6.75% (with a caveat, that latter one being slightly floorless mind you, maybe an indication that liquidity is drying up, or that the world is finally recognizing the risk of lending to AMZN?) Zeev