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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (265)	8/19/2001 7:22:41 AM
From: Tom Gordon	Respond to of 306849

Ramsey, I'm afraid you under estimate the Argentine situation, the Fed is $hitting bricks as to the undercurrents going on there. Brazil has just filed for IMF help, it's like a disease or contagion that will undoubtedly uniequivocally spread "if" Argentina defaults. Brazil isn't much healthier,Peru is in the most severe recession ever, so you can't say that it's small potatoes when the US banking system has significant exposure there after the hayday 90's. Hedge funds can't liquidate because that causes rampant inflation as interest rates skyrocket as nobody left to hold there debt instruments. So you see, it's far greater magnitude than you believe! Greenspan won't be racheting down interest rates much furthur, the cards are stacked against him, lower rate and out goes foreign debt holders and causing the US buck to tank as they flee for greater returns in the Euro. Greenspan is pieved that Germany won't lower rates along with them.Germany sees what 0% interest does as the Japanese have displayed this very well. By the way, the IMF is done lending to Argentina, if 59 billion in the last 2 years doesn't fix, what will? Regards Tom.