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To: Ilaine who wrote (14601)2/7/2002 5:08:14 PM
From: LLCF  Respond to of 74559
 
No he said if rates went to 1/2 % he'd borrow millions and invest it. So really he talks in circles economically speaking while claiming to disagree with assertions that are implicitly agreed to. Whatever,

<Mq wouldn't borrow millions at 1/2% unless he thought he could pay it back. If a) the economy was experiencing deflation or the currency was devaluing or 2) he did not have an expectation of a sufficient income stream, then he'd have no reason to do so. >

That's the whole point... more projects are done [are $ flow positive] @ 1/2% than 1%... do lower rates = more investment in projects, ceteris paribis... don't know what the argument is about.

DAK



To: Ilaine who wrote (14601)2/7/2002 7:33:49 PM
From: Snowshoe  Read Replies (2) | Respond to of 74559
 
CB or anyone, re: Japan

I'm having trouble puzzling out this Japan situation. On the one hand, it is being said that Japanese banks will dump U.S. bonds if they go under. On the other hand, it is being said that Japanese citizens are dumping the yen to buy gold and other currencies. Wouldn't it make sense for them to buy the U.S. bonds, thus canceling out the sales by the banks? I'm trying to figure out the impacts on the U.S. economy.