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To: Perspective who wrote (28496)	10/16/2000 1:10:22 AM
From: KeepItSimple	Read Replies (1) \| Respond to of 436258

Which is why the government will claim that any means necessary were justified in keeping the bubble alive. (BLS forging statistics, etc) The very essence of the worlds economic system is walking a tightrope. LTCM proved that without a doubt. ---------------------------- That's just sickening - that nearly equal amounts of money were spent on the paper of a single, relatively unknown company and the entire sum of goods and services in the United States. Put another way, the cash exchanged for slices of the company was roughly 5,000 times the sales that company did that day, or some 20,000 times the income they earned that day. We are in deep, deep trouble...

To: Perspective who wrote (28496)	10/16/2000 8:52:29 AM
From: LLCF	Respond to of 436258

James Grant in Forbes: forbes.com I thought this was interesting: The rudiments of TIIS are simple. The interest rate, which is set by auction, is fixed for the life of the security; interest is paid every six months on the inflation-adjusted principal amount--the more consumer prices rise, the bigger the principal becomes. At maturity, the Treasury redeems the principal, duly adjusted, but in no case does it pay less than the par amount at original issue. Today longer-dated TIIS are priced to yield about 4% after inflation.> I always thought the "real rate" was supposed to be about 3%, the 4% would imply something wrong with CPI??? I like this one: "As inflation is widely viewed as a historical risk, like Indian raids, inflation-sensitive investments are generally cheap. My longtime favorite, gold, is in a bear market older than Britney Spears." ROFL DAK