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Politics : Al Gore vs George Bush: the moderate's perspective -- Ignore unavailable to you. Want to Upgrade?

To: Bruce A. Thompson who wrote (2616)	10/16/2000 10:54:00 AM
From: Zeev Hed	Respond to of 10042

Bruce, that not te way "it" works, the government buys bond, thus competing with other bond buyers, resulting in the bond price increase (or lowering the interest rate). Come the point where some bond buyers compare returns of the bond vs other safe returns, and if the returns on bonds is too low, he selects another financial instrument, that process reverberate through the financial markets casing a shift of liquidity between different sectors, some of that excess liquidity ends up buying those dot.com. When those dot.coms vanish, that liquidity is "soaked up". Zeev