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To: Mohan Marette who wrote (71130)10/9/1998 5:03:00 PM
From: K. M. Strickler  Respond to of 176387
 
MM,

>> Ken:True but the market doesn't think that was enough,rightly or wrongly I might add.<eom> <<

I think that the cutting by other countries cutting the interest rate is a good sign since the countries with the highest interest rate attract the most investors. If we cut again, our rates will again be lower than the rest, and unless the other countries cut their interest rates, there would be cash flight to other countries.

On a 'level' playing field it seems that the US stock market (maybe all of the stock markets) perform pretty well.

I found it interesting that it was uncovered that in Japan investors were borrowing money at 1/4% (typical rate) and investing in the US TBills at a net gain of 5%! That is a sure gain on a very safe investment. This sort of investment is really risk free! (I think that the J-banks were investing the money directly - what a 'rip' for their investors that were being paid .25%!)

Just thoughts,

Regards,

Ken