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To: maceng2 who wrote (110446)	6/27/2001 6:06:51 PM
From: maceng2	Read Replies (1) \| Respond to of 436258

Property market seen as important King Pin for the economy news.ft.com I expect it to be heavily defended too. However.. But it warns that a decline in house prices, fall in income or sharp rise in interest rates could leave household finances vulnerable. so just one of the links failing could break the chain. pearly.

To: maceng2 who wrote (110446)	6/27/2001 6:52:25 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

the agreements in question are tied to lease rate/LIBOR differentials. however, there a different types of hedges. some are structured so as to fix a dollar-based forward price. in any event, i just wanted to point out the major flaw in the hedgers' thinking. they assume that the recent past is the perfect template for the future, that the stability of our monetary system is somehow guaranteed. they trust in other words in the greatest con game in history to continue functioning without hicc-up. i have never heard of hedges containing inflation-indexing clauses.