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.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: tekgk who wrote (6949)	10/23/1997 1:48:00 PM
From: Mike Fredericks	Read Replies (1) \| Respond to of 94695

Hey guys- Long time, no write. Now that I'm in school full-time, I don't get to follow the SI threads (except ANCR). Back in August, I stopped trading completely and put all my $ in one stock. Just wanted to say - guess we all were right, just off by a couple of months (I was buying puts heavy back in June/July. Lost on all of them.) Dow down 222... will be interesting to see if it hits -250 and market shuts down - how that's going to affect the public. Unfortunately, I gotta go to class, so unless it happens in next 15 minutes, I won't see it. Hope you all are making a killing off this drop - I have no funds left to play with... -Mike

To: tekgk who wrote (6949)	10/23/1997 2:25:00 PM
From: Bilow	Respond to of 94695

Tekgk: Yeah, in order to hold the HK dollar to ratio of US dollar, the government there has to sell US dollar denominated stuff and buy back HK dollars from the speculators that are dumping HK dollars for US dollars. This is essentially equivalent to a run on the bank, but the bank is the issuer of HK currency, I believe there are three HK banks that issue currency. The big one is the Bank of HK, the other two HK banks, I can't remember. Oh, and welcome Mike, but in your absence the market now has to drop 350 (instead of 250) pts to bring in a trading halt, I believe. -- Carl

To: tekgk who wrote (6949)	10/23/1997 2:57:00 PM
From: IQBAL LATIF	Respond to of 94695

My dear friend - you have raised some very intelligent questions it is because of this I call this thread as a very well versed threads with reality- you guys have lot going for you- great. 1- Asia is on one hand growth engine but also this an export led growth- rationalisation of currency will be good - artificially to peg currency higher was not the right thing- now with improving exports corporate profit picture will improve. An island economy of Singapore and Hong Kong will help lower import prices al over the world- they are unlike Mexico sitting on huge mountains of reserves and hence will overcome this crisis. As far they can export cheaply there revs will not fall- rather with currency devaluation they will have better competitive edge ofcourse urge of 7 out of 10 largest towers will be out but this crisis will rationalise their governance of economy, US corporates are biggest manufactures there and also big importers of their products some cancellation of big order is not equivalent to windfall profits they will make as a result of 20% lower wages in plants and also 30% decrease in consumer items cost. Cancellation of 50 billion $'s of orders over 3 years is nothing when you think of benefits. $ is the safe haven of the world- you only see flight to $ but never out of it- $ is gold- it is no more paper- here I and you will differ -since you as a native cannot comprehend the attraction of $, what can I say- they have a crisis and first thing they do iso buy $- why not DEM why not yen- it is because AG is effectively Chairman of 'global reserves'- the HK government is already buying HK $ and selling them US $ - it is huge flight of domestic capital to Canada and US-that is the whole problem- you are introducing an issue which is not at the heart of the whole thing. Nobody is or going to sell $'s if that is the case the problem would not start at the first place.