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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (12639)	10/23/1997 5:03:00 PM
From: Carlyle	Read Replies (1) \| Respond to of 50167

Ike, Do you think that the HK banks that are not letting customers close time oriented deposits foreshadow capital flow restrictions? Do you know of any way to judge the size and velocity of capital flows from this/these areas? Do you percieve the capital flow out to be a shorter or longer term issue? Do you think the HK$ to US$ peg will be removed? This should keep inflation even more under control. Lower costs of production for firms producing in that area translate to lower prices in US. Lower cost of production of ASEA firms will force US firms to keep prices low to compete on the international front. This should make for a more fundamentally strong US/world economy in the long term, but I think the US equity market will have a hard time seeing this for the next few weeks. Too many unknowns. Carlyle

To: IQBAL LATIF who wrote (12639)	10/23/1997 6:00:00 PM
From: Taqi Hasan	Read Replies (1) \| Respond to of 50167

Ike, Re: Lower production costs by US tech manufacturers Hi there!! Didn't get a chance to get on SI for the past few days, busy at work. Lot of posts to catch upto as usual. What about the lowered buying power of the Asians? I expect a fall in revenue for the US multinationals from the PacRim countries. Summer showed us a drop in revenues due to lowered sales in Europe, now the 4th qtr will be impacted by sales in the Asian countries. IMHO US bond market will be a prime benefactor of ASEAN money as a safe haven, not the stock market. Lower bond prices won't compensate for the earnings jitters for the multinationals. Regards, Taqi