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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?


To: isopatch who wrote (3827)11/11/2001 8:50:17 PM
From: Joan Osland Graffius  Read Replies (1) | Respond to of 36161
 
iso, >>Point being that were they to become disenchanted with our markets withdrawal from even part of that 40+% would have a severe impact on our markets and the dollar that could feed on itself.

Yes, I agree with you thesis and the percent of foreign ownership is large. When I read you post, I was thinking if these folks own a lot of the short dated paper and hold it at our banks. When they start selling and pulling there dollars out of the country via some instrument, this would cause the Fed to print like heck to keep the Fed funds rate at the target what ever it is at the time. The Fed printing or taking money out of the system is the mechanism they use to control the Fed funds rate and massive dollars leaving our banking system could cause a headache for Mr. Greenspan. Not that he does not have a headache at the moment. <ggg>

Joan