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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (97061)	8/4/2002 10:44:59 AM
From: Knighty Tin	Respond to of 132070

BGR, What has changed is that Alan da Printer has made credit extremely loose. Mainly, to save the financial system from Armageddon after one medium sized hedge fund looked to be falling apart. Now, loans are available readily for even the worst credits and the asset inflation is still rampant even while many of the previous assets deflate. Since foreign investors depend upon a strong dollar to invest in our stocks and bonds, they, if not pulling out, are at least holding back. So, the virtuous cycle of ever-increasing money and credit fuelling ever increasing stock and bond prices has a cylinder that isn't hitting. And that fundamental will hurt the buck. And the only way to correct it is to hurt one of the other cylinders, probably bonds as printers rarely change their ways.