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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?


To: Boca_PETE who wrote (14429)6/14/2000 11:35:00 AM
From: MrGreenJeans  Read Replies (1) | Respond to of 15132
 
Pete

Mr. GJ: Last Sunday in response to a caller in the last half of the second hour, Bob raised the possibility that Foreign investors might increasingly redeem their treasury securities as they lose confidence in the U.S. economy during the expected slowdown. Do you see this scenario as a credible risk that might upset your expected soft landing scenario?

It could be one possibility but I also remember Bob talking about a weak dollar a year ago that never materialized because of the subsequent rate increases.

Moreover, how do you see the impact on inflation of a FED, fearful of oncoming recession, lowering rates to soften the economic landing?

If a recession was oncoming the threat of inflation would most probably be greatly diminished in a slowing economy.

Keep in mind the economy is an incredibly complex model with thousands of variables all of which impact differently and some of which are not well understood.