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To: chenys who wrote (23735)	11/1/1998 1:35:00 PM
From: blake_paterson	Respond to of 45548

qy: Thanks for the Barron's read; adds balance to the discussion. RE: the closing line: <<And if the credit market is as troubled as he insists it is, he thinks the big rally in stocks is a goner as well.>> Do you think that the next cut will cause as much exuberance as the last one? BP

To: chenys who wrote (23735)	11/1/1998 4:39:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

q: >>Without a significant new buyer, the fixed-income markets, Jim contends, will have to be "repriced" to make up for the exiting of the leveraged funds. In other words, he foresees another hit to bonds of the lesser sort (which, of course, constitute the bulk of bonds) and a resumed widening of spreads. And if the credit market is as troubled as he insists it is, he thinks the big rally in stocks is a goner as well.<< Agree with most all in the quote, but it stops short of the next step. Greenspan is committed towards breaking up the "freezing up" of the credit markets. Those rate cuts are extremely powerful. Fundamentally, the US economy has many strong points. There are already signs of the "credit crunch" being loosened, but of course, we have to keep focused on this...the most important thing market wise to focus on. Last few days, 200 DMAs for market indices have been broken, so the market is saying it's more optimistic. Whether you think it's a head fake or not, we shall see. joe