Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: limtex who wrote (18292)	11/21/2000 1:20:25 AM
From: James C. Mc Gowan	Read Replies (1) \| Respond to of 65232

Hello Limtex: your mention of the corporate bond market/ LTCM jogged my memory of that time. I was very bearish on the stock market then, and had made some bets that it would go down further after the big selldown in late 1998. Amidst all the fortelling of doom prevalent on the threads at that time, the corporate bond market was noted as a major concern for Allan Greenspan. As it is now, spreads btw corporate high risk/junk bonds and treasuries were wide and growing. It was Mr. Greenspan who bailed out the markets, even going so far as to announce interest rate cuts on the Thursday prior to expiration of SPX Futures. That was a memorable day in the markets with a major intraday reversal to benefit the Houses, who had agreed to go along with the LTCM bailout. It has occured to me that we may be close to another command performance by Greenspan, if indeed, he is as concerned about bond yield spreads now, as he was then. Economic conditions are improved overall, but perhaps the Fed's policies have been too draconian, and the fear of a hard landing will become more of a palpable reality. Certainly the corporates market reflects this. Tough to see what's next, but I'll keep my eye on Greenspan and his speeches after this election mess is resolved, as I believe he holds the key to any meaningful recovery for the markets, just as in the past. Perhaps another surprise attack to catch the bears in the midst of thier victory parade? History repeats. Regards, James