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Strategies & Market Trends : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?

To: HammerHead who wrote (38794)	8/9/2002 3:50:40 AM
From: Whitmore G.	Respond to of 52237

I'm confused. I was always taught that borrowing from Petter to pay Paul was not a reason to rejoice. Why then the run up in the stock market when Brazil gets permission to borrow 30 billion more from Uncle IMF to pay back to Uncle IMF for previous loans. This isn't even borrowing from Petter to pay Paul. It's borrowing from Paul to pay Paul so people won't think bad of you and Paul for not being able to continue the shell game. What a joke. Mean while the Brazilian Power Elite are laughing all the way to their Swiss Bank accounts. I notice the International Banks are NOT falling for this con any more. That means this new 30 billion helps the Brazilian economy very little, if at all. No new business loans means no new Brizilian jobs. Which means no new Brizilian product to export. Those who take the time to do the analysis get the real picture. It's the little guy who doesn't that will get hurt the most in the end, as usual, buying into the hype. "Brazilian Borrowers Forced to Repay as Overseas Banks Balk By Charles Penty Sao Paulo, Aug. 9 (Bloomberg) -- International banks are refusing to renew loans to Brazilian borrowers, triggering sales of the nation's currency that may not let up before the October presidential election. Bank of America Corp., Citigroup Inc. and rival lenders have reduced Brazilian financing to limit their risk in the face of the financial turmoil that has gripped South America's largest economy. Bankers said the International Monetary Fund's announcement this week of a $30 billion loan package to help Brazil avert a debt default isn't sufficient to persuade them to loosen their purse strings. ``You want to minimize your hits,'' Wachovia Corp. Chief Financial Officer Robert Kelly said in an interview. The fourth- largest U.S. bank isn't renewing loans as they mature and plans to reduce by half the $720 million in trade financing it has outstanding in Brazil....." quote.bloomberg.com