G'day all - dear tom, Ron & all - while I think HK is still not out of the wood, I find a comparison btwn HK and Thailand amount to apple and orange. Also, I am a bit buffered by the virginity test. According to Paul Berliner on the Asian Forum, the Fed has also intervened back in the dark days of 87 crash. Chairman Alan Greenspan has gone on to be the most powerful man [according to some <g>] in the States.
While I respect the differing of opinions here, I find the commentaries on HKMA's action from the pundits a bit self-serving. For example, a guy from Tiger Fund [not sure if there are actually several Tiger Funds out there, if so, I stand corrected <vbg>] complains about it. Sure, it was reported Tiger and Quantum are two of the hedge funds active in betting against HKMA.
Certainly, HK interest rate is not in accordance with her economic outlook. So, I agree something has to give. My guess is that by imposing a 150% interest on the future [10,000 or more contracts] is a step to fine tune the interest rate situation by allowing the interest rate for mortgages and business loans to drop without letting the hedgers to come in through the back door. Again, the Fed has also done certain things analogous to that.
best, Bosco |
