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To: schrodingers_cat who wrote (128547)7/18/2001 7:09:07 PM
From: GST  Read Replies (1) | Respond to of 164684
 
Cat: "There is always going to be money fleeing" When the stock market peaked, many people said "don't worry, there is no other place for people to put their money". We heard things like "401k money will just keep pouring into the market -- don't worry". Now it is "don't worry, we are the "safe haven" and the money will keep pouring in". BTW, we need $400 billion or more per year JUST TO STAND STILL. Less than a net inflow of $400 billion per year means the dollar goes down. Now think about it, where is $400 billion of FRESH CASH going to come from in other countries? From Japan? Not likely, From China? Not likely. From Europe? Not likely. If the money does not arrive then the dollar goes down. If the dollar goes down people will accelerate their sales to get the hell out of the way of the falling dollar.



To: schrodingers_cat who wrote (128547)7/19/2001 2:18:34 AM
From: craig crawford  Respond to of 164684
 
>> However, I still think that the relative attractiveness of US investments to foreigners will help to stop any slide from becoming too drastic. There is always going to be money fleeing troubles in other parts of the world. <<

money may flee our country and head to places like south africa, australia, new zealand, canada, the middle east etc. don't assume that people will always choose to park their money into stocks and bonds and that our country as the lesser of evils will win by default. at times people do put their money into hard assets and they forego paper investments.

prepare yourself for a repeat of the 70's...