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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: AllansAlias who wrote (39078)	11/19/2000 2:47:37 PM
From: Ilaine	Read Replies (2) \| Respond to of 436258

>>All you Rep and Dem faithful should GFY.<< LOL, fine with me, but I do think there were some very good posts this weekend. >> Bond Believers See Prelude to a Fall By GRETCHEN MORGENSON hen the bond market talks, investors don't always like to listen. After all, bond investors tend to spot bad news on the horizon and then telegraph it to the rest of the world in language as complex as Alan Greenspan's when he testifies before Congress. But with the stock market in a swoon, investors looking for guidance are starting to heed the distress signals that the bond market has been sending up recently. And what some observers fear they see in these signs is a storm for the United States capital markets that may be tougher to recover from than the debacle in the autumn of 1998. That year, a crisis was precipitated by the demise of one giant hedge fund, Long-Term Capital Management. But after the Federal Reserve Board lowered interest rates, recovery came swiftly to the stock market and the economy was relatively unscathed. This time around, market observers say, the turbulence will be set off by many troubled companies buckling under the weight of excessive debt lent to them at the height of New Economy euphoria. That scares the pinstripes off the pants of some who heed the bond market's signals. If worried investors continue to shun corporate bonds as they turn away from risk, many companies will find it impossible to raise the capital that leads to new job creation and continued economic growth. And since much of the economic growth in this nation over the past few years came from the big money spent by companies that had raised cash in the anything-goes bond market, the economy could slow quite sharply as the money spigots go dry.<< More at NY Times, registration required. nytimes.com