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Technology Stocks : INTEL TRADER

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To: Gersh Avery who wrote (6671)8/30/1999 7:04:00 AM
From: MonsieurGonzo  Read Replies (1) of 11051
 
Gersh:" Yen:Yank "

biz.yahoo.com

why there has been no apparent Yen:Yank intervention ?

"The dollar will have to depreciate further to enable the United States to finance its ballooning current account [balance of trade] deficit... The fundamental cause of the dollar's weakness lies in the fact that the U.S. current account deficit has grown too large to be stably financed by the surpluses of Japan and Europe... To help close the gap of more than $100 billion, the United States has two policy options -- let the dollar fall further, or depress consumers' overspending by [further] tightening credit."

why Bonds have seemingly relentless sellers/supply ?

"...The U.S. financing gap has leapt further than the calculated difference between its [foreign trade] deficit and the world surplus as Japan has been repatriating the bulk of money invested in U.S. markets since August 1998... ...Japanese have turned net sellers of U.S. bonds, unloading 453.9 billion yen ($4.09 billion) [of U.S. Bonds] on an annualised basis since the fourth quarter of 1998. "

why EuroStock Markets are essentially flat YTD ?

"...the departure of Japanese money has dealt a heavy blow, and the United States has had to recall capital invested in Europe and Latin America [to finance balance-of-trade account deficits]... [as a consequence]... U.S. investors have pulled $79.7 billion from European securities markets and $12.8 billion from Latin American stock markets on an annualised basis since the fourth quarter of 1998. "

what we think of Japanese businessmen/economists ?

"uh, yeah, so - when does football come back on TV, dude ?"

-Steve (^_^)
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