Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Tom Byron who wrote (53745)	6/5/2000 3:43:00 PM
From: Alex	Respond to of 116791

Good one Tom............ Report: Global Stocks Out of Tune BASEL, Switzerland (AP) - The world's stock markets are out of tune with the global economy, the general manager of the Bank for International Settlements said Monday. ``There is a potential risk if every time the economy is slowing, stocks rise,'' Andrew Crockett told a news conference at the annual general meeting of the BIS, regarded as the central bank for central banks. ``Every time markets have seen evidence of a slowdown, this has been countered by an increase in stocks (prices) which is wealth-creating. This is potentially unsustainable,'' Crockett said. Bill White, head of the BIS's economics department, noted stocks have also rallied recently as economies show signs of speeding up. The bank's annual report noted ``an unusual degree of uncertainty about how financial markets, which have been evolving rapidly, might react to possibly adverse economic shocks.'' ``What is more certain is that the current growth rate of the U.S. economy is unsustainable,'' said the conclusion to the 191-page study. ``Against this background, the recent tightening of monetary policy is welcome.'' Crockett urged the European Union to push forward with structural reforms to help strengthen the euro and weaken the dollar, helping to ease economic activity in the United States. ``What we want to see is a sustainable slowing in the economy ... but we cannot discount the possibility of a hard landing and central banks should work to help minimize that,'' Crockett said. In its annual report, the BIS said Asia's prospects for future growth are solid, but added that heavy dependence on the technology sector and slow progress in corporate and bank restructuring make the region's economies vulnerable to a sudden reversal of investment. It cautioned that a sudden weakening of the dollar could shake investor confidence in Latin America, also citing current account deficits and structural fiscal problems as potential risks. Private banks and hedge funds are now better prepared to weather a financial storm than at the time of the 1998 bailout of the U.S. hedge fund Long-Term Capital Management Ltd, Crockett said, but he warned that ``memories are not always long ones.'' dailynews.yahoo.com