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Non-Tech : Derivatives: Darth Vader's Revenge -- Ignore unavailable to you. Want to Upgrade?

To: Henry Volquardsen who wrote (359)	10/5/1998 6:49:00 AM
From: Bobby Yellin	Read Replies (1) \| Respond to of 2794

Hi Henry I guess you could also add that with all the refinancing,a lot of household heads are paying a lot less in mortgage rates..I haven't read how much they are saving a year. The productivity in technology has its downside though..with the elimination of many more jobs than it has created..add to that the mergers which create one tech center and let go tech people..add to that the competitive nature of the internet and thus the cutting into margins since people can now really price shop.. ps read this at morgan stanley site.. re Slovakia ..doesn't sound good ms.com But now for the questions. I had read in Barron's at the beginning of the year that one foreign money manager(can't remember his name and didn't save the article) say that most of the money being lent by banks went to financial instruments rather than to investing in companies for growth and creation of more jobs..that strongly suggested that this market has been based on paper rather than on productivity..and now we are seeing the fallout. Do you what offhand what the financial institutions exposure to derivatives are? So far they are only disclosing hedge fund exposure but are not revealing what they have in their own account. Also since the rates have gone down down down,is it worth the risk reward now for derivatives players to continue playing the bond market? HOw much does volatility help? Now it would seem that the bond market has to continue to be a no brainer..even with the possibly bearish trend for dollar against European currencies..since most are assuming that the Fed will be forced to lower their rates by another 3/4 of a point. I figure we can see what dire straits we are in if the President caves in on lowering tax rates to increase our consumer consumption..and down the road saving social security etc by making the dollar have a lot less "value".. Please keep us informed if any of the hedgers are moving more money towards commodities..the possible next game in town if reinflation is on the horizon..okay?