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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Joan Osland Graffius who wrote (95633)	4/24/2002 11:36:16 PM
From: John Pitera	Respond to of 132070

Hi Joan, There are many differences between Japan and Argentina, cultural and otherwise as you know. Those extravegant Argentinian's.... The Depression of the 1890's was thought to have orginated with the craze for Argentine securities in Europe in the 1880's..... As Chernow points out the seeds of the crisis started with big gold outflows from NY to Europe. Ironically enough, teh city of London in the 1880's was swept by a craze for Argentinian securities, which were said to comprise half of all British money invested oversees. Then the Argentinian wheat crop failed and a coup in Buenos Aires followed. The prospect of a default hurt the Morgan bank in London, but nearly wiped out the esteemed Barings Bank. This was 100 years before rogue trader Nick Leeson,based out of Hong Kong, was able to bankrupt Barings bank. That was an accounting and loss hiding episode that mirrors yesterday's revelations of the $750 million dollar loss that Irish allied Bank (AIB) sustained. Message 17028286 In the Book, The History of Citibank, the authors illustrate how the speculation in Argentine and Brazlian securities and debt in the 1920's was the first leg of the table that started to give way in 1927 and 1928. It created an aversion to speculative markets and supplied the initial prick to the liquidity bubble. So as we can see they really know how to sow the seeds of economic entropy down there -g- John