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Strategies & Market Trends : Waiting for the big Kahuna

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To: Skeet Shipman who wrote (34129)11/22/1998 8:37:00 AM
From: yard_man  Read Replies (1) of 94695
 
>>3. The inordinate interest rate differentials among the industrial nations.<<

Skeet,

I though this was symptom rather than a cause. Capital starts flowing out and they raise the rates to keep their reserves. Admittedly it has a contractionary effect in the country when the high rates are put in place, but the "damage" already done to the economy is just being expressed, right? OTW why would everybody (foreigners) be pulling their money out?

In the case of oil -- asian demand went slack causing the drop in prices which put Latin American producers in difficult straits.
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