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To: sandeep who wrote (19011)	11/1/2001 8:02:19 PM
From: patron_anejo_por_favor	Respond to of 209892

<<I would still prefer Uncle Sam to the equities.>> I do. But there are many other alternatives, including foreign equities and debt, commodities, precious metals, bank deposits, land, corporate debt and so forth. Long rates were where they were due to market forces, perhaps a bit lower than they would have been had the government not started buying them in during the Clinton administration. Prior to that they were a very useful barometer of inflationary expectations (and very indirectly of interest-rate adjusted equity valuations). If deflation continues, the market would have eventually adjusted prices up. Either way, the government WILL need to sell debt in the near future due to deficits, therefore it makes no sense from a financial standpoint to stop their issuance...unless the goal is to remove them as an effective benchmark for other financial (especially debt) instruments. And that is why it was done.

To: sandeep who wrote (19011)	11/1/2001 8:50:53 PM
From: At_The_Ask	Respond to of 209892

Dont forget that many people are not aware that equities are more likely to go down from here than up. And unfortunately neither are their financial advisors. The elimination of long bonds leaves a lot of money needing a place to go. There are few alternatives to equities at this point especially since the market is "way undervalued". I really truly hope that the intention of the fed was not to create bagholders. As if the boys dont fleece enough people as it is now they are forcing conservative investors to belly up to the trough.