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.

Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (88452)	1/13/2001 2:07:18 PM
From: Joan Osland Graffius	Respond to of 132070

michael, I am also interested in what is going to happen with interest rates. I had some long term treasuries which I dumped lately, but I have been rolling short term treasuries and FDIC CE's with a fair amount of my cash because I have no idea if we are going to have inflation or deflation. One of my brokers lets me use this short term stuff for credit spreads so it has been good for me. Right now I suspect greenspan will try and inflate us out of this mess and there could be an opportunity to lock in some nice rates for the long haul, this would assume after inflating it goes to heck and we get a deflationary period. One thing I think will happen is inflation until this natural gas problem is solved. All aspects of our food chain require natural gas for the products as well as production. I expect food to skyrocket in price as well as other commodities that we need for survival. It will be interesting to see what MB thinks. Joan

To: Square_Dealings who wrote (88452)	1/13/2001 8:45:24 PM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Michael, I think we are very close to a bottom in rates for notes and bonds. Bills may still have further to go as they are more closely related to Fed shenanigans. Munis could get a short term boost if Calif. is bailed out. But after that, I would think about pulling in maturities a bit. Or, buying a few T-bond futures put options as insurance. But be careful. Remember that each contract represents the right to put $100,000 worth of bonds, not $1000. I hope that doesn't sound patronizing, but I had a friend who worked at an insurance co. who didn't understand that and caused a few problems, including his own sudden departure from money management.