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To: skinowski who wrote (82376)9/22/2003 3:00:54 PM
From: Henry J Costanzo  Read Replies (2) | Respond to of 209892
 
Sorely tempted to comment, but promised Shack never again to be lured into FA......g



To: skinowski who wrote (82376)9/22/2003 7:21:20 PM
From: Perspective  Respond to of 209892
 
The faltering dollar should result in foreign selling of US assets. That increased supply will reduce liquidity, and cause dollar-denominated prices to fall. With the dollar declining, there will be a double whammy to US holders as the securities decrease in dollar value, and the dollars they're measured in decrease as well. This is the reverse of the last several years, where the assets rose in dollars, and the dollar rose as well.

The ability of US bonds to rise in value in the face of the first leg of the dollar bear market has kept foreigners complacent IMO. They will be far less likely to sit still with a falling dollar and falling or stable bond prices, especially with non-US opportunities increasing in favor.

BC