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

To: Knighty Tin who wrote (61283)	6/2/1999 10:41:00 PM
From: valueminded	Read Replies (1) \| Respond to of 132070

Mike: No doubt about it, but If the bond ends up going to 8% before turning south again, you can make a lot of return by betting on the upside. My thinking is that companies will continue to borrow as long as they think that they are getting a better return on the borrowed money than the interest rate they are paying. Once the rate is high enough, I think that the borrowing dries up which means we are ready to turn the rates around again. Also, as long as greenjeans has to continue adding reserves, the "monetary inflationary pressure" would seem to be in place. (imo) chris