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To: mishedlo who wrote (185902)	8/6/2002 9:12:16 AM
From: stan_hughes	Respond to of 436258

That "formula" = a recipe for buying all the way into the basement. Makes you wonder what those institutions plan on meeting their obligations with after they've committed financial suicide chasing equities down. Obligations like pension payments to the about-to-be-bulging-with-retired-yuppies demographic. I'll answer my own question: With equity values smoked, and an insufficent-sized new batch of employed/well-heeled investors coming up behind to play Ponzi with, those institutions will obviously have to cash in on the bond side to meet thier cash obligations, or at least not re-invest as much. Won't that be pleasant for corporate and government borrowers as it takes hold. Liquidity-induced upward pressure on interest rates, right at the worst time. High school economic students are going to read about silly details like this one day

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