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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: tekgk who wrote (12467)	12/29/1997 11:17:00 AM
From: Zeev Hed	Respond to of 18056

Tek, relative to the discrepancy between the stated deficit and the debt, while I am not sure, it could be the difference between income statement and cash flow of a company. I would not be surprised if the treasury decided to borrow more than actually necessary to exploit the low interest environment (after all, those guys are not doing too bad replacing high cost debt with lower cost debt). They may have prepaid expenses for the current fiscal year (cash flow) which are in this year budget. They may have advances paid out as well. If this discrepency stay between cash flow and income statement stays on, then you might be right. At this point, I would not make much of it. The rate of growth of the debt is about the rate of growth of the economy, and if we avoid a real recession, which I think we will, than it is going to saty that way. Zeev