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Pastimes : Ask Mohan about the Market

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To: Defrocked who wrote (7726)11/12/1997 8:22:00 PM
From: geewiz   of 18056
 
Defrocked,

Always enjoy your posts, you are especially helpful in stating matters like balance and risk in clear terms. An imbalance that troubles me more than a single company or sector or even the whole market is the imbalance in the currencies.

What these countries that devalue are saying is that they have no other way to solve their problems than to change the value of what they own. After everybody gets done devaluing we will be left with an overvalued dollar and two significant deficits, trade and past budget, coupled with total lack of savings. I guess its' the result or curse of being a reserve currency. So far its' been possible to convince others to lend us enough to cover the spread. This can't contiue.

The two possible outcomes I see are printing a lot of money and watching the yeild curve steepen, or call all debt and fix a payout with a commodity we've got the most of(moonrocks)?

Sure enjoy the discussion on this thread,

regards,art
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