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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (42467)	7/30/1999 1:01:00 AM
From: Activatecard	Read Replies (1) \| Respond to of 94695

Is this the equivalent of Katie bar the door for derivatives? Steve

To: Haim R. Branisteanu who wrote (42467)	7/30/1999 1:30:00 AM
From: Skeet Shipman	Read Replies (2) \| Respond to of 94695

Haim, *THE FOLLOWING IS PURELY MY PERSONAL VIEW BASED ON LIMITED KNOWLEDGE OF THE DETAILS.* The Japanese seem to be more judicious and forceful in enforcing their banking regulations on this matter than the US is. Having faced their extended bear market and financial institutions problems they are as conservative about leverage and derivatives as we were when we passed Glass-Steagle. Our present period of prosperity has caused us to forget the insurance companies that failed in the late 1980's, early 1990's, because of their use of derivatives with a deflating asset base and more recently LTCM. Personally, I am apprehensive about the repeal of Glass-Steagall Act and the Bank Holding Company Act to remove the legislative barriers against the integration of banking, insurance and securities activities. I question whether we have the political and regulatory fortitude to prevent abuses. As far as the Princton Institute's view on this. I think they have it all backwards. The last country we want to get in a confrontation with over bond financing is Japan. I also agree with the Japanese on the inappropriateness on the structure of the derivative products; especially, in their situation. *THE ABOVE IS PURELY MY PERSONAL VIEW BASED ON LIMITED KNOWLEDGE OF THE DETAILS.* Skeet