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


To: Joan Osland Graffius who wrote (79792)4/18/2000 8:52:00 AM
From: Freedom Fighter  Respond to of 132070
 
Joan,

>>Will it be enough for stocks, or will it find its way into the credit markets.<<

I don't have a very clear understanding of this stuff, but my intuition tells me that even if Japanese money flows into credit markets it's good for US stocks. Any demand for US treasuries, mortgage backed, corporates etc... keeps interest rates lower and relieves the need for the US to finance itself. That frees up cash for the stock market.

If I was the head of the Fed and wanted to support the bubble I would ask foreign central banks to step in. I think AG has his hands somewhat tied because of the rising inflation, huge current account deficit etc...

Wayne