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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (30808)	8/9/1998 4:59:00 PM
From: Earlie	Respond to of 132070

PK: As noted earlier, I'm no economist, but the shear size of that offshore mountain of debt (treasuries) together with the ocean of greenbacks in which the world is awash are two prodigal sons that are unwanted at home. Keeping it off shore as well as keeping it from flooding (overwhelming) the bond markets are both mandatory from the Fed point of view. This is unlikely to be facilitated without higher interest rates, particularly if the Japanese increase their interest rates (which I see as inevitable and near term). As noted earlier, the oncoming Euro adds to the problem. Higher rates would totally crater an already shaky market, especially as the earnings continue to evaporate. I totally agree with your assessment as to the Achilles heel. Best, Earlie