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Washington Outlook: Capital Wrapup


Wall Street and the Clinton campaign have been eyeing each other like two scorpions in a bottle. Hypernervous bond traders have convinced themselves that a Clinton victory might unleash an inflationary spending binge. And Bill Clinton knows that an economy-slowing spike in interest rates would get his Presidency off to the worst possible start. Now, Clinton has designated a top adviser, Robert E. Rubin, co-chairman of Goldman, Sachs & Co., as his troubleshooter on the Street. Rubin has been working to calm traders' fears about Clinton policies and to quench market brushfires fed by rumors about Clinton's intentions. And he has been advising fellow Clintonites what not to say or do to avoid roiling the credit markets.Edited by Stephen H. Wildstrom

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