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Strategies & Market Trends : Currencies and the Global Capital Markets -- Ignore unavailable to you. Want to Upgrade?

To: Robert Douglas who wrote (2332)	12/22/1999 11:31:00 AM
From: Henry Volquardsen	Respond to of 3536

Hi Robert, Europe is a good topic. The next day or two is a bit hectic but I'll try to collect my thoughts and respond. Henry

To: Robert Douglas who wrote (2332)	12/22/1999 6:48:00 PM
From: Hawkmoon	Respond to of 3536

Positives for a growing economy: ú Low priced currencies. Great for export based corporations... unless that is, the market you are exporting to comes under economic pressure. Weak currencies reflect a weak economic structure and poor internal economic fundamentals. Europeans are frantically complaining about the growing US trade deficit on one hand. Yet, on the other, experts are holding out the importance that a weak Euro will give to providing an artificial advantage to their companies in the currency markets. Weak currencies also don't encourage the form of investment that is required to boost economic entrepreneurialship that would reduce unemployment. This is especially true when necessary corporate restructurings will likely increase that unemployment rate, given the current strength of Europe's labor unions and probably over-hiring (more employees on staff than required to produce a particular product). Just a couple of thoughts to throw out there. Regards, Ron