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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (8599)	9/16/2000 12:47:46 PM
From: WTSherman	Read Replies (2) \| Respond to of 10921

Zeev, this is a very interesting question and one that's been(and is still being) debated within the treasury dept. I believe that there is considerable sentiment for keeping some amount of debt for exactly the purposes you mention. Also, don't forget that there is the municipal bond market and the federal agency market(Fanny Mae, etc.). Lastly, I think its a fairly academic debate since I don't think that the budget surplus projections are remotely likely to come true. Sooner or later there will be a recession and the whole surplus issue will quickly fly out of the window. Also, between tax cuts and new spending programs that both parties are proposing I don't think that Treasury will be able to retire more than $50-100B/year over the next 10 years.