Ask Mohan about the Market Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Hunt who wrote (8100)	11/16/1997 1:40:00 PM
From: Rational	Read Replies (4) of 18056

John, I expect the dollar to go down and the US over-night (repo) interest rate to inch up as the Japanese sell their US Treasuries (like the HK Central bank did). There will be jitters in the US market's interest rate sensitive stocks. I do not think, on Thursday, Greenspan knew of the Japanese plan to sell US Treasuries, when he commented about the minimal impact of SE Asian turmoil on the US economy. He correctly assumed that SE Asian Central Banks' selling US Treasuries could do no harm to US dollar. Further, he correctly noted that SE Asian currency problem has stabilized and that US businesses will have minimal effect. This lifted the tech stocks on Thursday and Friday. The Japanese have to prop up their banks' balance sheets to have them continue international banking by improving their precipitously fallen capital levels. The BOJ cannot reduce the interest rate below 1.5% (?) to return profitability to Japanese banks. Japanese will have to sell a lot of their $800 bil US Treas, before Wed, to ensure that their banks' capital levels are OK. This is a real threat to to US$. Sankar

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next