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

To: valueminded who wrote (44642)	1/27/1999 11:05:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Chris, The other holders are concerned and part of the money supply growth has come from other countries dumping Treasuries that the Fed is buying. I haven't looked at Compaq's numbers. I figured that DEC gave them 2 years of any type of fakery they chose to engage in. I did notice that they missed their revenue numbers, just as Gateway did. The eps are almost certainly an accountant's pipe dream. The main thing that made me chuckle is the announcement that CPQ had sales "TO THE END USER" up 43%. In other words, they have nary one box in the channel. All those CPQ boxes stacked to the rafters and under tarps out in front of the warehouses at distributors must be a mirage. <G> Basically, they knew ahead of time what honest folks would say about their revenues almost coming in on target when we all know they didn't, so they tried to cut off criticism by telling a totally unbelievable story in the headlines. What will cause the bubble to pop? The Fed slightly slowing down the rate of credit growth to save the buck and the bond seems like the main suspect to me. I am not saying raise rates or reduce credit, just hold even or reduce its growth rate. Stagflation, inflation, deflation have a lot to do with how the market plays out. Oddly enough, it kind of doesn't matter for a put player. Does the weak commodity markets cause a sharp reduction in supply, boosting inflation? Or, do folks still continue to produce too much and lose money? It could go either way. Y2K will also have an impact, and since I wasn't around for Y1K, I have no idea how it will play out, other than disastrously. MB