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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (69058)	10/15/1999 11:45:00 AM
From: Les H	Read Replies (1) \| Respond to of 132070

Y2K Clouds Microsoft wired.com

To: Les H who wrote (69058)	10/21/1999 9:35:00 PM
From: geewiz	Respond to of 132070

Les, Interesting F.T. article dealing with potential capital risks of lenders; ft.com ; <<In advanced economies, institutions have evolved to minimise lending risks. A single currency eliminates exchange rate risk; a lender of last resort eliminates the risk of illiquidity; and a well-ordered bankruptcy regime resolves the competing claims in the event of insolvency. All these institutions are lacking in many emerging market economies. IMF packages have become bigger and bigger as it has been forced to grapple with runs on the capital accounts of big emerging market economies, such as Mexico in 1995 and South Korea in 1997. But resources will never be enough to meet any conceivable run. Worse, these packages have allowed the short-term lenders who triggered the crises to escape largely unscathed.>> later, art