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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: lurqer who wrote (24083)	8/2/2003 4:24:24 AM
From: James F. Hopkins	Respond to of 89467

Form Johns letter July 28th...he was in Euorpe "here was an intense discussion on Greenspan's latest policy statements, which none (including me, of course) in the room could understand. It is best summed up in a statement by Alex Bridport, of Bridport and Cie., in a client letter he wrote the next morning. (Bridport is a major firm, consulting with large European institutions on their bond portfolios, which in the aggregate would be well in excess of $100,000,000,000. They have bought over $20,000,000,000 in bonds for their clients just since the beginning of the year. In short, they have their fingers on the pulse of European institutional investors.) This caustic note from Sir Alex: "When it comes to wealth destruction, the recent fall in bond values must rival any thing that happened to the stock market when the bubble burst. For this contribution to mankind, investors can thank Alan Greenspan for an operation we might call the "Greenscam." It involved him allowing investors to believe that the overwhelming risk was deflation and that all means would be used, including the Fed buying long T-bonds, to keep long-term yields low and support the "carry trade." Then Greenspan pulled the rug and investors all fell down, taking off the carry trade. ------ There is so much that goes on, ( off the radar of trimtabs etc. ) ----- Now when things like this happen, with the size & speed that happened, the lost money don't show up somewhere else..it's gone to money heaven..& it can't come back unless a big bidder puts a bottom under the bonds.. ----- Like a stock that has No buyers..can go from $100 to $2 in a heart beat and the money it did represent is gone.. ---- I said several weeks ago, due to low interest rates ( I found it was cheaper to buy the futures and in most cases the options than the stock ) and that this run up was built on futures & credit not real money.. Jim PS There is still an inverted interest rate yield John never mentioned and it's in I-Bonds... I do know that the( $1000 denomination I-Bond alone) has sucked in over $630,460,000 in the last 3 months I know this by checking the serial numbers on the bonds I bought..