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.

Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (30487)	10/23/2000 1:56:36 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 436258

this referred exclusively to the activities on Wednesday. when buyers for 1,700 spoos showed up at the limit down price with cash continuing to plunge, you could be reasonably certain that manipulation was taking place. no-one would seriously put in orders like that on their investment merit.

To: Crimson Ghost who wrote (30487)	10/23/2000 2:05:57 PM
From: LLCF	Read Replies (2) \| Respond to of 436258

Notorious 'Dennis' out of Chicago futzing with the A$: US dealer accused of trashing Aussie dollar SYDNEY (AFP) - - A US currency trader was accused here Sunday of playing a key role in the slump of the Australian dollar, which hit an all time low last week amid desperate government efforts to prop it up. As analysts search for an explanation for Australia simultaneously having one of the world's strongest economies and one of its weakest currencies, Sydney's Sun-Herald named Chicago-based speculator Richard Dennis as the principle cause of the slump of the "Aussie". Dennis is said to have sold 400 million Australian dollars (208 million US) on January 28, sparking an avalanche against the Aussie from which it has never recovered -- "because he saw an opportunity to make a quick buck." The selling has continued ever since and the dollar, which reached a six-month high of 66.64 US cents in January, had dropped 22.5 percent to an all-time low 51.65 US cents last week before clawing its way back above 52 cents. Australian Treasurer Peter Costello has spent the last few days in New York trying to prop up the local currency. He spoke to major Wall Street traders and influential investors to try to persuade them to reassess it in the light of Australia's sound economic fundamentals, such as a strong budget surplus, low inflation and rising productivity. He will also attend this week's meeting in Montreal, Canada, of the G20 group of nations to discuss, among other issues, international currency instablity and options for dealing with it. The meeting will also discuss the persistent weakness of the euro, which has also been targeted by currency traders in recent weeks. Dennis was described as a big-time speculator who turned 400 US dollars into a personal fortune of more than 200 million US dollars in the last 18 years, using what he called "the turtle system" -- identifying a trend and sticking to it. His assault on the Aussie began when he saw data showing Australia's lower than expected inflation rate as a signal that the country would not raise interest rates as they were expected to do in the United States. His decision to dump the Aussie saw it plunge that day by more than five percent, a fall of 3 US cents, to 62.25 US -- its biggest one day drop in three years. Dennis could not be reached for comment, but his colleague Wesley Covel told the Sun-Herald: "The Aussie dollar has become a great currency to short and make money as it sinks downward. "Lots of money is being made as it goes down." Selling short means betting how low the currency will go over the next few hours. When traders all over the world do this it drives the curency down, regardless of what its true levels should be. If true -- and many observers here have suspected it for months -- it makes a mockery of comments by supposed experts about the likely causes of the depreciation. Some analysts have linked it to Australia's persistently high current account deficit or to the fact that Australia is perceived as having an old economy dependent on primary exports and inadequate hi-tech industry. But, according to the Sun-Herald, speculators like Richard Dennis and Wesley Covel know or care little about the shape of the Australian economy. "Who cares if the economy is sound?" said Covel. "The trend is down, so traders short the currency. It's as simple as that." DAK