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

To: Freedom Fighter who wrote (54284)	4/2/1999 11:29:00 AM
From: Knighty Tin	Respond to of 132070

Wayne, Borrow short to lend long has always been a recipe for starting a recession, and that is definitely what the Fed is encouraging. Here is where AG's control breaks down. Folks do borrow short to buy more bonds, but even more bonds come to market. That keeps forcing rates higher. The Freddies and Fannies are taking on mortgages in record numbers while AT&T and others are hurrying to dump bonds into this scam. Unfortunately, none of this leveraging of the balance sheet is increaing eps. 1. The trade deficit is already well beyond huge and we are hearing grumblings from Japan and China as they try to get out of their dollar holdings. 2. Maybe, but if inflation ticks up, they simply change the way the #s are calculated. Again! 3. Clinton, Reuben and Greenspan is enough bad luck for decades. <g> 4. Earnings fell last year. They will be worse this year. The lenders have noticed by extending spreads on anything but AAA paper. Best, MB 2.