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To: Enigma who wrote (47135)	1/16/2000 2:44:00 PM
From: Alex	Read Replies (2) \| Respond to of 116790

BIS Banker Warns on Markets Excerpt from Financial Mail on Sunday By Alex Brummer, January 16, 2000 "Stock markets around the world are almost certainly overvalued, according to Andrew Crockett, head of the Bank of International Settlements. In an interview with Financial Mail, Crockett, who also heads the Global Stability Forum, said he believed there was a possibility that 'there will be a correction'. His concern was to make sure that financial institutions were not so exposed as to be 'placed in jeopardy and risk a broader financial meltdown' Crockett believed that most financial institutions were reasonably well capitalised and supervised 'and able to withstand a correction'. But he was concerned when, as now, 'markets get out of balance'. He also warned that the high level of the US current account deficit and the associated low level of savings 'is not indefinitely sustainable'. The task of central banks was to help a smooth adjustment and not wait until the markets became volatile." Far from being some kind of financial apocalypse nut, Andrew Crockett is the head of one of the world's wealthiest and most powerful international financial institutions (see background below). Anyone who doesn't take his warning seriously is the nut. About the BIS The Bank for International Settlements, Basel, Switzerland, is the "Bankers' Bank". It was established at the Hague Conference in January 1930 in connection with Germany's war debt payments under the 1929 Young Plan. It also acts as a forum for international meetings, a centre for financial research, and helps implement international financial agreements. The BIS is essentially a gold-based central bankers' bank, which acts as clearing-house for the balance of payments between countries. From the report on "Earmarked Gold in Canada, 1935-56" by the Bank of Canada: "The Bank for International Settlements (BIS) was a Swiss-based legacy of World War I. It had been established in 1931 in Basle to oversee the reparation payments agreed to by Germany after the war. All of the European central banks contributed to its establishment and were represented on its board. In effect, the BIS became the central bankers' central bank. Although Germany never fulfilled all its reparations commitments, the BIS remained active in interbank and various commercial transactions...