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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Oeconomicus who wrote (17111)	1/19/1999 9:30:00 PM
From: Kip518	Read Replies (1) \| Respond to of 18691

the effect on interest rates would be negative (i.e. higher rates) simply because the surplus effectively reduces the government's demand for borrowed funds RD, also interesting to think about the consequences of taking SS money that is currently used to buy U.S. debt (t-bills, etc.) and divert it to the market. Even with budget surpluses as far as the eye can see, the government must continue to borrow to fund the national debt (no proposal to reduce it -- see URL below). The effect, one presumes, is that that portion of debt previously purchased with SS funds will now have to be sold to the public and/or foreigners. Higher interest rates seem inevitable. publicdebt.treas.gov

To: Oeconomicus who wrote (17111)	1/20/1999 12:09:00 AM
From: Mama Bear	Respond to of 18691

To: Oeconomicus who wrote (17111)	1/20/1999 11:18:00 AM
From: Marconi	Respond to of 18691

Hello RD: The short term effect on the stock market would probably be positive, but the effect on interest rates would be negative (i.e. higher rates) Bingo! Long term shorters paradise. Fed buying top of the century equities higher while interest rates are pressured upwards. Consequences longer term--raised cost of investment and doing business, ergo, lower stock prices. Voila!! Surplus surpise deluxe, a la Fed creme de la creme of wackiness. Of course further congressional interventions would be needed to remedy the perversity of the market...whacko 2! We the people can manage better without them. Smacks of a centrally planned equities market. Soviet style. Very un-American and it cannot work with the efficiency, we the people already practice. Whoa! I'll step off my soap box now Best regards, m