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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?


To: Bonnie Bear who wrote (8018)10/27/1997 10:17:00 PM
From: Defrocked  Respond to of 94695
 
Great Question got me thinking ahead (which could
be dangerous. But its not so depressing.)

IMHO long bond bounces off 5.50%-5.75%, no lower due
to threat of reflation and next year's ballooning
deficit. The short end down to 4% initially. Results in a
reasonable upward sloping yield curve implying
markets concern for threat of inflation.

Forecast is at risk if Japanese dump bonds. But the
global demand for dollars could actually help here.
As tekgk pointed out, we have ourselves a potentially
huge economic battle looming between Japan and the US.

techstocks.com

My response was

techstocks.com

The economic battle being fought today is directly related
to Japan's intransigence in tackling real estate loan problems
as the US did with the S&L's. Indirectly the battle being fought
may be related to the future competitiveness of the Chip industry.
(Wow, that's a Machiavellian thought...where did that come from<g>)