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To: long-gone who wrote (87345)	6/25/2002 1:06:34 PM
From: Real Man	Respond to of 116815

I guess, some people, not Hutch, see similarities between this quotes.ino.com and these blacktusk.commerce.ubc.ca blacktusk.commerce.ubc.ca blacktusk.commerce.ubc.ca blacktusk.commerce.ubc.ca

To: long-gone who wrote (87345)	6/25/2002 2:38:07 PM
From: Jamey	Respond to of 116815

Long gone, its just the last throes of the DOW and NAZ in bear rallies as traders close out their short positions. Pity the long that buys into these. Santiago

To: long-gone who wrote (87345)	6/25/2002 6:59:45 PM
From: Richnorth	Read Replies (1) \| Respond to of 116815

US trade deficit may lead to the dollar's collapse It risks a sudden reversal in capital flows and investor sentiment unless the record current account gap narrows, says IMF WASHINGTON - The United States' record current account deficit leaves its currency vulnerable to collapse, threatening global economic growth, the International Monetary Fund (IMF) has said. The deficit - the broadest measure of international trade because it includes investments - widened to US$112.5 billion (S$199.7 billion) in the first quarter. The IMF said the gap was a 'concern' and must decline at some point. 'This adjustment could be achieved in an orderly fashion as a result of improved growth performance among partner countries,' it said in an annual report on the world's largest economy. 'However, less orderly adjustments can be envisaged, including through a sudden reversal of investor sentiment and capital flows, and rapid dollar depreciation.' An abrupt decline in the dollar may 'jeopardise recovery prospects abroad, disrupt capital market access for developing countries and also adversely affect US investment and incomes', the IMF said in the report, released by the US Treasury Department. European governments and the Federal Reserve have also questioned the sustainability of the trade deficit. Fed chairman Alan Greenspan has said in recent years that a wider deficit as a percentage of gross domestic product (GDP) may erode investors' confidence in the dollar, should they start to question the country's ability to meet its obligations. The current account deficit was a record 4.3 per cent of GDP in the first quarter, Commerce Department statistics show. The dollar has fallen 3 per cent from its January peak, when measured against a basket of currencies from the US' largest trading partners, including the yen, the euro, the Mexican peso and the Canadian dollar. That follows a 25 per cent rise over the past five years. The current account shortfall represents money the US has to borrow overseas to pay for all the goods and services Americans import and to finance investment not covered by US savings. It reflects Americans' willingness to live beyond their means by buying more than the economy can produce. US Treasury Secretary Paul O'Neill says the deficit reflects the strength of the US economy and the desire of foreigners to invest in it. He also noted that the account is calculated using methods developed in the 1940s, when economies were less open to foreign investment. Elsewhere in its report, the IMF said that while the outlook for the US economy appeared 'broadly favourable', doubts remained over the prospects for corporate profits and investment, and the underlying strength of household demand. 'How these uncertainties are resolved depends critically on the extent to which the US economy can sustain the rapid rates of productivity growth that have been recorded in recent years,' it said. Through the first quarter, productivity had risen 4.2 per cent over the previous year. The Fed 'has some room to wait before acting', the report said, but that 'will need to be balanced against the possibility that delaying action would require larger and more disruptive policy adjustments later on'. The Fed is not expected to raise its target rate for overnight loans between banks when its policy-setting Open Market Committee concludes a two-day meeting today, according to investors and economists.--Bloomberg News